MAKIN AND SONS LTD

Executive Summary

Makin and Sons Ltd is a very recently formed micro-entity with limited financial data but shows initial signs of liquidity risk due to negative working capital. Credit approval is conditional, requiring close oversight of cash flow and operational performance as the company develops. The small net asset base and single-person control structure warrant cautious monitoring to ensure ongoing creditworthiness.

MAKIN AND SONS LTD - Analysis Report

Company Number: 15163431

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Makin and Sons Ltd is a newly incorporated micro private limited company with limited financial history. The company shows positive net assets (£360), but current liabilities exceed current assets by £5,490, resulting in negative working capital. This indicates a liquidity risk in the short term. However, with a single director/owner controlling 100% of shares and voting rights, the company has a clear governance structure. Credit approval is conditional on close monitoring of liquidity and cash flow improvements as the company establishes trading operations.

2. Financial Strength:
   The balance sheet reveals very modest fixed assets (£5,850) and current assets (£26,987), with current liabilities at £32,477. The net asset position is positive but minimal (£360). The company is in the early stage of its financial lifecycle, typical for a startup micro-entity, and does not yet demonstrate strong capital cushions or retained earnings. The negative net current assets highlight a potential over-reliance on short-term credit or delayed collections.

3. Cash Flow Assessment:
   Negative net current assets of £5,490 indicate working capital strain. The company’s cash conversion cycle and creditor terms should be carefully evaluated to ensure the ability to meet short-term obligations. Given the lack of an audit and very limited financial history, cash flow forecasts and management accounts should be requested to assess liquidity trends and operational cash generation capacity going forward.

4. Monitoring Points:

• Monthly cash flow and working capital trends to detect liquidity pressure early
• Timely filing of financial statements and confirmation statements to maintain compliance
• Any changes in director or ownership structure that may impact governance or credit risk
• Growth in assets and reduction in current liabilities as the business scales
• Payment history on trade creditors and any new credit facilities established