MAC TRAFFIC SOLUTIONS LIMITED

Executive Summary

MAC Traffic Solutions Limited demonstrates a stable but modest financial profile suitable for limited credit exposure. Liquidity has slightly weakened recently, so credit should be extended with conditions requiring close monitoring of cash flow and liabilities. Continued transparent financial reporting and operational performance updates will be essential to support credit decisions going forward.

MAC TRAFFIC SOLUTIONS LIMITED - Analysis Report

Company Number: 13229947

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MAC Traffic Solutions Limited shows a stable financial position with net assets of £86k and positive working capital. However, the company is relatively young (incorporated 2021) and has experienced a decline in net current assets and cash balances in the latest year, signaling some liquidity tightening. The directors hold substantial ownership and control, which suggests aligned interests, but the absence of an audit and limited financial history requires cautious monitoring. Credit approval is recommended with conditions focusing on ongoing liquidity management and timely financial updates.

2. Financial Strength:
   The company’s balance sheet reflects modest fixed assets (£59k) primarily in plant, machinery, and vehicles, and a reasonable net asset base of £86k. Shareholders’ funds remain positive, though reduced from prior years (£103k in 2021). Deferred tax liabilities are recorded at nearly £12k, indicating some tax timing differences but not an immediate concern. The company qualifies as a small entity and benefits from exemption from audit, but this limits the depth of financial scrutiny. Overall, the financial strength is adequate for modest credit facilities but not for large exposures.

3. Cash Flow Assessment:
   Current assets total £67k with cash on hand of approximately £59k, against current liabilities of £28k, producing net current assets of £39k, which is down from £60k the previous year. This contraction, particularly the reduction in cash and trade debtors (from £14k to £8k), warrants attention. The company has some short-term bank loans (£9.7k) and increased tax liabilities (£13.7k) compared to last year, which may pressure near-term liquidity. The working capital position remains positive but shows a downward trend that requires monitoring to ensure continued debt servicing capability.

4. Monitoring Points:

• Liquidity trends: closely watch cash balances and debtor collections to avoid cash flow constraints.
• Current liabilities, especially bank loans and tax obligations, to confirm timely payments.
• Profitability and turnover trends (not disclosed here) to assess revenue stability and growth.
• Related party balances to directors (currently £3.7k) as potential contingent liabilities.
• Timeliness and completeness of future filings to maintain transparency and regulatory compliance.