Company Number: 14762540

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: DECLINE
   Leckhampton Autocentre Limited, a newly incorporated micro-entity in vehicle maintenance and repair, presents significant credit risk. The latest accounts as of 31 March 2024 show negative net assets (£-5,003) and net current liabilities of £21,133, indicating immediate liquidity stress. The company is loss-making or undercapitalized from inception, with current liabilities substantially exceeding current assets. There is no evidence of profitability or positive cash flow to support debt servicing, and minimal equity (share capital £2) offers no cushion. The company's short operating history further increases uncertainty around its creditworthiness. Given these factors, extending credit without substantial guarantees or collateral is not advisable.

2. Financial Strength:
   The balance sheet reveals weak financial health. Fixed assets stand at £20,590, but current liabilities of £35,430 outweigh current assets of only £14,297, resulting in a negative working capital position of £21,133. After accounting for accruals and deferred income (£4,460), the company records net liabilities of £5,003. Shareholders’ funds are negative, indicating accumulated losses or underfunding. This fragile capital structure is typical for a start-up micro-entity but signals insufficient financial resilience.

3. Cash Flow Assessment:
   The negative net current assets and net liabilities highlight potential cash flow difficulties. Without detailed cash flow statements, the large creditor balances relative to current assets suggest the company may struggle to meet short-term obligations. The presence of only three employees including directors indicates a lean operation, but does not offset the overall liquidity shortfall. The absence of reserves or retained earnings implies limited internal funds to buffer operational cash demands.

4. Monitoring Points:

• Quarterly updates on working capital and cash flow to assess improvement or deterioration.
• Profit and loss trends to determine path to profitability.
• Changes in creditor days and overdue payables to detect payment stress.
• Director and shareholder equity injections or external funding events.
• Any significant contract wins or expansion plans that could impact financial stability.