Company Number: 14223083

Analysis Date: 2025-07-20 17:09 UTC

1. Credit Opinion: DECLINE
   Mr Parts Ltd demonstrates weak financial health with persistent net liabilities of £647 at the latest year-end and negative shareholders’ funds. The company has no fixed assets and minimal equity (called up share capital of £1), with current liabilities exceeding current assets, indicating strained liquidity. The absence of profit generation and the continuation of negative net assets over three years raise serious concerns about the company’s ability to meet its debt obligations. Additionally, the company operates with only one employee, which may limit operational capacity and resilience. Given these factors, the risk of default or inability to service new credit facilities is high.

2. Financial Strength:
   The balance sheet shows a small but increasing net liability position (from -£363 to -£647), reflecting accumulated losses retained in the profit and loss reserve. There are no fixed assets recorded, and current liabilities (trade creditors) have nearly doubled in one year. Shareholders’ funds remain negative and minimal, indicating no buffer to absorb losses or support growth. The company’s capital structure is fragile and reliant on continued shareholder support or external funding.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, resulting in a negative working capital position (-£647), which suggests liquidity constraints. The company’s limited scale (just one employee) and the nature of its trade creditors may create cash flow timing challenges. There is no evidence of cash or equivalents disclosed, implying that liquidity risk is elevated. The negative working capital indicates difficulty covering short-term obligations without additional financing or improved operational cash inflows.

4. Monitoring Points:

• Track net current assets/liabilities regularly to assess liquidity trends.
• Monitor profit and loss account movements to evaluate operational performance and progress toward profitability.
• Watch creditor balances and payment terms for signs of supplier strain or delayed payments.
• Review any changes in share capital or external funding injections to support solvency.
• Keep an eye on director changes and PSC control for any governance risks or shifts in management strategy.