DR MATTHEW L TRAIN LIMITED

Executive Summary

Dr Matthew L Train Limited exhibits significant financial deterioration with near depletion of net assets and shrinking working capital over the last three years. The company relies on director loans to maintain operations, which, combined with minimal equity and limited transparency, presents elevated credit risk. Based on current financials, credit facilities should be declined until there is clearer evidence of financial recovery and stronger capitalisation.

DR MATTHEW L TRAIN LIMITED - Analysis Report

Company Number: 13104814

Analysis Date: 2025-07-20 12:50 UTC

1. Credit Opinion: DECLINE

Reasoning: The company shows a marked deterioration in net assets from £15,132 in 2020 to just £1 in 2023, indicating significant erosion of equity and financial strength. Net current assets have also declined sharply, with just £1,520 in 2023. The company operates as a micro entity with minimal capital (£20 share capital) and limited financial buffers. Additionally, a large director loan balance (£10,531) remains outstanding, raising concerns about reliance on director financing to sustain operations. The absence of an audit and very limited financial disclosures further reduce transparency. Overall, the financial profile suggests weak capitalisation and potential liquidity risk, making credit approval unsuitable at this time.

2. Financial Strength:

• Net assets have plummeted from £15,132 (2020) to £1 (2023).
• Current assets decreased from £20,757 (2020) to £12,131 (2023).
• Current liabilities increased from £4,485 (2020) to £10,611 (2023).
• Working capital remains positive but is significantly reduced (£1,520 in 2023 versus £16,272 in 2020).
• The company is highly undercapitalized with negligible shareholder funds.
• The director loan outstanding indicates external financing dependency.

3. Cash Flow Assessment:

• Current ratio (~1.14 in 2023) indicates marginal ability to cover short-term liabilities.
• Working capital significantly diminished, limiting operational liquidity.
• Director loan advances and repayments suggest reliance on informal funding sources.
• No cash flow statement provided, but balance sheet trends imply tight liquidity.
• Lack of audit and small company exemptions reduce confidence in cash flow transparency.

4. Monitoring Points:

• Track net asset trends for further erosion or recovery.
• Monitor director loan balances and repayments closely.
• Review filing of next accounts and confirmation statements for compliance.
• Assess any changes in current liabilities and accruals that may impact liquidity.
• Watch for changes in business activity or capital injections that strengthen balance sheet.