MANHOME LTD

Executive Summary

Manhome Ltd exhibits a stable but declining financial position with positive net current assets and reduced equity, alongside low cash reserves. The company’s ability to service debt depends heavily on effective debtor management and potential director financing. Conditional credit approval is appropriate with close monitoring of liquidity and cash flow metrics going forward.

MANHOME LTD - Analysis Report

Company Number: 13485147

Analysis Date: 2025-07-29 20:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Manhome Ltd demonstrates a modest but stable financial position with positive net current assets and shareholders' funds. However, the company shows a declining equity trend over the last year and relatively low cash balances, indicating some liquidity pressure. The director is the sole significant controller, which centralizes decision making but also concentrates risk. Credit approval is recommended with conditions on monitoring cash flow closely and ensuring timely debtor collections to mitigate liquidity risk.

2. Financial Strength:

• Shareholders’ funds decreased from £15,751 in 2023 to £8,543 in 2024, reflecting a loss of £7,208 in the latest year.
• Current assets have declined from £35,587 to £21,616, mainly due to a reduction in debtors from £34,902 to £20,000 and a small increase in cash from £685 to £1,616.
• Current liabilities have reduced from £19,836 to £13,073, including a notable increase in director's current account liabilities, which may suggest financing from the director to support operations.
• The company remains small scale, with total assets less current liabilities at £8,543, indicating a thin equity base.

3. Cash Flow Assessment:

• Cash at bank is low at £1,616, which restricts the company’s immediate liquidity.
• Debtors are significant (£20,000), and timely collection will be critical to maintaining operating cash flow.
• Net current assets remain positive at £8,543, which suggests some short-term buffer, but the decline from previous years signals caution.
• The increase in director’s current account creditor balance (£9,526) may be a short-term funding source but is not a sustainable substitute for operational cash flow.

4. Monitoring Points:

• Watch debtor aging and collection periods closely to prevent cash flow bottlenecks.
• Monitor cash balances monthly and assess the need for external working capital facilities if cash remains low.
• Track the director's current account balances to understand if ongoing director financing is occurring and its impact on credit risk.
• Review future profit and loss trends once available to confirm if losses are continuing or the company is recovering.
• Ensure timely filing of accounts and confirmation statements continue to maintain regulatory compliance.