MAJET DEVELOPMENTS LTD

Executive Summary

Majet Developments Ltd is a recently incorporated micro-entity in specialised construction with a solid net asset and liquidity position for its size. The company is financially sound to meet short-term obligations but has limited operating history. Credit approval is recommended with standard monitoring on business growth and working capital management.

MAJET DEVELOPMENTS LTD - Analysis Report

Company Number: 14528483

Analysis Date: 2025-07-29 12:57 UTC

1. Credit Opinion: APPROVE
   Majet Developments Ltd presents as a very small, micro-entity with clean, recent accounts and an active status. The company is in the early stage of operations (incorporated Dec 2022) but shows a positive net asset position and net current assets, indicating the capacity to meet short-term obligations. There is no indication of financial distress or adverse director conduct. Given the micro size and limited operating history, credit approval should be on a standard basis but with monitoring given limited track record.

2. Financial Strength:
   The company’s balance sheet as of 31 December 2023 shows fixed assets of £2,625 and current assets of £12,262 against current liabilities of £2,994. This results in net current assets (working capital) of £9,268 and net assets/shareholders’ funds of £11,893. The positive net asset and working capital position reflects a financially sound foundation for a micro business. However, the absolute values are modest due to the company’s recent formation and micro scale.

3. Cash Flow Assessment:
   Current assets substantially exceed current liabilities, suggesting a comfortable liquidity position to cover short-term debts. There is no detailed cash flow statement, but the working capital ratio (>4:1) is strong. The company has only one employee and low fixed assets, implying relatively low cash burn and overhead. This supports a stable short-term liquidity profile, though monitoring will be required as the business grows.

4. Monitoring Points:

• Business growth trajectory: monitor revenue and profit growth as company expands beyond micro scale.
• Working capital management: ensure current assets remain sufficient to cover liabilities with increasing operational activity.
• Director involvement and governance: given sole shareholder/director with full control, maintain oversight for sound financial stewardship.
• Payment performance: monitor payment history with suppliers and lenders to confirm ability to meet obligations promptly.