Company Number: 13011831

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MAK GROUP SERVICE LIMITED shows modest net asset growth and maintains a positive net asset position, indicating incremental strengthening of its financial base. However, the company operates with minimal current assets relative to current liabilities, implying potential liquidity constraints. Given its micro-entity status, limited scale, and a solitary director, credit exposure should be cautiously managed with clear covenants on cash flow monitoring and timely financial reporting.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £116,492 consistently over the last four years, providing a tangible asset base. Net assets have increased from £4,431 in 2020 to £11,532 in 2023, signaling slow but positive equity growth. Current liabilities remain high relative to current assets (£1,242 vs. £106,202 in 2023), resulting in a negative net working capital position when calculated as current assets minus current liabilities (Note: the reported net current assets figure appears to be misstated, possibly a typographical error since current liabilities exceed current assets). The company’s capital structure is primarily equity-based but with limited liquidity buffers.

3. Cash Flow Assessment:
   The very low level of current assets compared to current liabilities indicates potential difficulty in meeting short-term obligations without additional working capital support or prompt collection of receivables. Cash reserves appear minimal, and the company’s ability to generate sufficient operational cash flow is unclear from available data. The average employee count has declined from 2 to 1, which might reduce overheads but also suggests limited operational scale. Close scrutiny of cash flow statements and receivables/payables aging will be essential before extending or increasing credit.

4. Monitoring Points:

• Liquidity ratios, particularly current ratio and quick ratio, to track improvements or deterioration in short-term solvency.
• Timeliness and accuracy of future accounts and confirmation statement filings to ensure compliance and visibility.
• Operational cash flow trends and debtor collections to assess real-time repayment capacity.
• Any changes in director or significant control that could impact governance or credit risk.
• Impact of market or sector conditions on the company’s educational support and real estate activities.