Company Number: 13673425

Analysis Date: 2025-07-19 11:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Makagroup Ltd is a very young cleaning services company with a small but improving financial position. The company has moved from a net liability position in 2022 to positive net assets and net current assets in 2024, indicating early signs of financial stabilization and growth. However, cash balances remain minimal (£1,106 as of October 2024) and there are no employees, suggesting limited operational scale and liquidity constraints. The absence of an audit and the very small scale limit financial transparency. Credit facilities should be extended cautiously, preferably with limits tied to short-term performance and cash flow monitoring.

2. Financial Strength
   The balance sheet shows a positive trend: net assets increased from negative £281 in 2023 to positive £842 in 2024. Current liabilities have decreased slightly, and net current assets improved to £842, indicating an improved ability to cover short-term obligations. Fixed assets are zero, which suggests limited tangible collateral. Shareholders’ funds have grown but remain modest, reflecting limited capital investment. Overall, the company appears financially fragile but improving.

3. Cash Flow Assessment
   Cash on hand is very low at £1,106, though this is an improvement from £67 the prior year. Current liabilities are low (£264), so the company has some short-term liquidity but minimal buffer. The company’s working capital is positive but narrow, showing limited cushion to absorb unexpected expenses or revenue fluctuations. No employees and low accruals indicate a lean cost base, but also possibly limited revenue generation. Cash flow generation appears marginal; this is a key risk area.

4. Monitoring Points

• Cash position and liquidity trends on quarterly basis
• Changes in current liabilities and working capital position
• Revenue growth and customer concentration to assess business sustainability
• Directors’ management of operating costs and capital injections
• Timely filing of accounts and confirmation statements to ensure compliance
• Any changes in control or director appointments that may affect governance