Company Number: 13001130

Analysis Date: 2025-07-29 19:41 UTC

1. Credit Opinion: APPROVE
   M2MGUBBINS Limited demonstrates a solid financial position with a positive net asset base and improving working capital. The company is active, compliant with filing deadlines, and shows growth in net assets and liquidity over the past two years. Directors are experienced IT consultants, suggesting competent management. While the company is relatively young and small, its cash reserves and net current assets position it well to service debt and meet short-term obligations.

2. Financial Strength:
   The balance sheet as at 30 November 2023 shows net assets of £22,417, a significant increase from £2,086 in 2021, indicating growth and retained earnings accumulation. Fixed assets are minimal (£1,013), consistent with an IT services business. The company has no long-term liabilities reported; current liabilities stand at £15,313, comfortably covered by current assets of £36,717, resulting in net current assets of £21,404. Shareholders’ funds are strong relative to the modest share capital of £100, reflecting retained profits.

3. Cash Flow Assessment:
   Cash at bank (£25,241) forms a substantial portion of current assets, evidencing good liquidity. Trade debtors have increased to £11,376, which is reasonable and suggests ongoing business activity. Current liabilities include a directors’ loan account (£4,603) which may provide flexible internal financing. The working capital position is healthy, indicating the company can meet immediate obligations without liquidity stress.

4. Monitoring Points:

• Monitor debtor aging to ensure timely collections and avoid cash flow issues.
• Watch corporation tax and VAT liabilities, which have increased and could impact short-term liquidity.
• Track the directors’ loan account level to understand reliance on internal funding.
• Ensure continued revenue growth and profitability, as turnover figures are not disclosed but are critical for ongoing creditworthiness.
• Observe any changes in the IT sector or client base that could affect demand for services.