Company Number: 13888859

Analysis Date: 2025-07-20 19:04 UTC

1. Credit Opinion: APPROVE – M N LYCEOM LTD demonstrates modest but positive financial stability. The company has shown growth in net current assets and net assets from £230 in 2023 to £16,029 in 2024, indicating improving financial health. The business operates in the retail sale of automotive fuel, a sector with consistent demand, and is managed by a single controlling director with full ownership, suggesting clear decision-making authority. Although the scale is micro and the financial base is small, current liabilities remain comfortably covered by current assets, supporting the company’s ability to meet short-term obligations.

2. Financial Strength: The company’s balance sheet reveals a net asset position of £16,029 at 31 March 2024, up from £230 the previous year, reflecting retained earnings or increased capital injection. Current assets of £142,266 exceed current liabilities of £126,237, resulting in positive net current assets (working capital) of £16,029. There are no fixed or long-term assets reported, typical for micro-entities, so asset backing is limited to working capital. The shareholder funds are equal to net assets, confirming no external long-term debt, which reduces financial risk but also limits capital flexibility.

3. Cash Flow Assessment: Positive net current assets indicate the company has sufficient liquidity to cover immediate liabilities. The increase in current assets by nearly £45,000 year-on-year is favorable, likely driven by improved cash or receivables management. Current liabilities have grown but remain covered by assets. The company employs 3 people, suggesting manageable payroll expenses. The absence of long-term debt reduces fixed financial commitments, enhancing cash flow resilience. However, small absolute amounts mean any operational disruption could strain liquidity.

4. Monitoring Points:

• Track continued growth or stability in net current assets and net assets to ensure financial improvement is sustained.
• Monitor creditor days and debtor collection to maintain positive working capital.
• Watch for any increase in liabilities or fixed costs that could pressure liquidity.
• Review director’s management decisions and any changes in ownership/control which might impact governance.
• Keep an eye on sector conditions affecting retail sale of automotive fuel, including regulatory or market price changes.