Company Number: 14062477

Analysis Date: 2025-07-19 12:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M A TYRES LTD is a very recently incorporated micro private limited company trading in retail motor vehicle parts. The company has improved its net assets from a negative position (£-3,025) in 2023 to positive £12,588 in 2024, indicating a modest recovery. However, current liabilities remain high relative to current assets, with a working capital deficit of £23,607 in 2024, a deterioration from the prior year’s £41,975 deficit. This suggests potential liquidity stress and limited short-term financial flexibility. The director and sole significant controller is Mr Asif Mahmood Mughal, who holds complete ownership and management control, which may concentrate risk but also provides clear accountability. Given the micro entity size, limited trading history, and liquidity constraints, credit approval should be conditional on close monitoring of cash flow and timely payment performance.

2. Financial Strength:
   The company’s balance sheet shows fixed assets around £36k and current assets of £51,926 against current liabilities of £75,533 at 30 April 2024. The net asset position of £12,588 is positive but modest. The significant current liabilities compared to current assets result in a negative net current asset (working capital) position. This is a concern for short-term solvency. Nevertheless, the improvement from net liabilities in prior years indicates some progress in financial stability. The small size and micro categorization limit the scale and resilience of the business. No long-term debt or provisions are disclosed, which is positive from a leverage standpoint.

3. Cash Flow Assessment:
   Direct cash flow data is not provided, but working capital analysis points to liquidity pressures, with current liabilities exceeding current assets. The company’s ability to meet immediate obligations may be strained, and reliance on director funding or credit terms from suppliers is likely. The stable employee count of 2 suggests low overhead, supporting operational cash flow control. The improvement in net assets and current assets over the last year is encouraging but not sufficient to offset the large current liabilities. Monitoring debtor collections and creditor payment terms will be critical to managing liquidity risk.

4. Monitoring Points:

• Working capital ratios and current asset to current liability trends to detect worsening liquidity.
• Debtor aging and creditor payment patterns for cash flow management.
• Any significant changes in ownership or director status given the concentrated control.
• Trading performance and growth in turnover once available to assess business scalability.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.