MACHINE DRIVEN LTD

Executive Summary

Machine Driven Ltd has demonstrated a strong recovery in its financial position with positive net assets and improved liquidity as of March 2025. While the business remains small and requires monitoring of cash flow and creditor management, it appears capable of meeting its current obligations. Conditional approval is recommended with ongoing review of trading performance and working capital dynamics.

MACHINE DRIVEN LTD - Analysis Report

Company Number: 12622934

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: APPROVE with conditions.
   Machine Driven Ltd demonstrates a positive turnaround in its financial position, moving from net liabilities to net assets over recent years. Its current liquidity position is sound with net current assets of £18,384 as of March 2025 and no overdue filings, suggesting good operational discipline. However, the company remains a micro-entity with modest fixed assets and limited share capital (£1), indicating exposure to business risks. Approval is recommended with monitoring of cash flow and profitability trends to ensure ongoing debt servicing capability.

2. Financial Strength:
   The balance sheet shows significant improvement. Net assets have grown from a negative £2,803 in 2021 to a positive £20,336 in 2025. Fixed assets have increased modestly to £5,543. The company’s current liabilities rose substantially to £61,420, but current assets increased more substantially to £79,804, resulting in a comfortable working capital surplus. The company has maintained a micro-entity profile with small scale but improving equity base, which enhances its financial resilience.

3. Cash Flow Assessment:
   Net current assets of £18,384 indicate adequate short-term liquidity to cover current liabilities. The reported increase in current assets suggests improved cash or receivables levels, which should support daily operations and creditor payments. The increase in creditors is matched by increased assets, implying normal business growth rather than liquidity stress. However, absence of detailed cash flow statements and profit & loss data limits a full assessment of cash generation and repayment capacity; hence, close monitoring of operational cash flows is advised.

4. Monitoring Points:

• Continued profitability and cash flow generation to sustain working capital levels.
• Management of creditor days and inventory turnover to avoid liquidity squeeze.
• Any significant changes in current liabilities or asset quality.
• Impact of market conditions on the retail mail order/Internet sales sector (SIC 47910).
• Any changes in director or ownership structure that might affect governance or financial strategy.