LOCKER STORAGE LTD

Executive Summary

Locker Storage Ltd is a newly formed micro-entity with limited financial data and modest net assets. While current liquidity is positive, the lack of trading history and small equity base warrant a cautious credit approach. Conditional approval is recommended with ongoing monitoring of financial performance and cash flow development.

LOCKER STORAGE LTD - Analysis Report

Company Number: 15075641

Analysis Date: 2025-07-20 15:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Locker Storage Ltd is a recently incorporated micro-entity with limited financial history and modest net assets (£2,172). The company’s current and net assets position is positive but minimal, and there is a small amount of long-term creditor liability (£1,021). Given its very early stage of operations and limited scale, credit risk is elevated due to lack of trading track record and low asset base. Approval for credit facilities should be conditional on obtaining further financial updates and assurances on cash flow and business plan viability.

2. Financial Strength:
   The company’s balance sheet shows net assets of £2,172, reflecting a small equity base contributed by the sole shareholder/director. Current assets (£3,820) exceed current liabilities (£2,669), resulting in positive working capital of £1,151. However, there is a modest long-term liability (£1,021) which reduces total net assets. The capital structure is equity-dominated with no significant fixed assets or retained earnings, typical for a new micro-entity. Overall, financial strength is weak but currently stable with no signs of distress.

3. Cash Flow Assessment:
   Current assets primarily consist of cash or equivalents given the early stage and no employees. The positive net current assets indicate adequate short-term liquidity to meet immediate obligations. However, the absence of operating history and revenues means cash flow projections and working capital sufficiency remain uncertain. Close monitoring of cash inflows and outflows is essential to confirm the company’s ability to sustain operations and service any credit facilities.

4. Monitoring Points:

• Timely filing of next accounts to assess trading performance and profitability
• Changes in net current assets and working capital trends
• Development of revenue streams and cash flow generation
• Any increase in borrowing or contingent liabilities
• Director’s ongoing commitment and financial support if needed