MAGOR TECH CONSULTING LTD

Executive Summary

Magor Tech Consulting Ltd is a micro-entity in its first full financial year, showing positive net assets and working capital with no debt. While the company’s financial position is currently stable, limited operating history and scale warrant cautious credit support with focus on monitoring trading results and cash flow. Overall, the company has potential but remains a moderate credit risk until further financial evidence is available.

MAGOR TECH CONSULTING LTD - Analysis Report

Company Number: 15200235

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: APPROVE with caution. Magor Tech Consulting Ltd is a newly incorporated micro-entity operating in management consultancy with a single director and sole shareholder. The company demonstrates a positive net asset position and working capital surplus despite its early stage, indicating initial financial prudence. However, limited financial history and the small scale of operations suggest moderate credit risk. Lending should be considered on a secured or limited exposure basis, with emphasis on monitoring future trading performance and cash flow stability.

2. Financial Strength: The balance sheet as of 31 March 2025 shows current assets of £29,673 against current liabilities of £18,642, yielding net current assets of £11,031. Total net assets and shareholders' funds are also £11,031, reflecting no long-term liabilities or fixed assets reported. This modest equity base is typical for a micro-entity at start-up stage. The absence of debt and positive working capital provide a sound financial footing but highlight the company's reliance on ongoing operational cash flow to sustain growth.

3. Cash Flow Assessment: Liquidity appears adequate for current operations, with net current assets indicating the company can cover short-term obligations. However, the small absolute cash and receivables suggest limited buffer against unexpected expenses or downturns. The company employs one staff member (likely the director), minimizing fixed overheads. Given the early stage and micro scale, cash flow volatility risk is present, and ensuring timely invoicing and receivables collection will be critical for maintaining liquidity.

4. Monitoring Points:

• Future filing of full profit and loss accounts to assess trading profitability and cash generation.
• Growth in turnover and net assets to confirm business scalability.
• Any increases in liabilities or credit facilities that may affect leverage.
• Director’s ongoing involvement and financial stewardship as sole decision-maker.
• Timeliness of statutory filings and compliance to avoid regulatory risks.