MARINAPET CONSTRUCTION LTD

Executive Summary

Marinapet Construction Ltd shows a solid equity position with no long-term debt but tight short-term liquidity. While the company appears financially stable, limited cash flow data and modest working capital require conditional credit approval with continued monitoring of liquidity and profitability metrics. The business’s micro-entity status and stable employee base support cautious optimism about its ongoing operational capability.

MARINAPET CONSTRUCTION LTD - Analysis Report

Company Number: 14194960

Analysis Date: 2025-07-29 15:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Marinapet Construction Ltd is a micro-entity operating in the construction industry, with active status and no signs of distress such as liquidation or administration. The company demonstrates positive net assets of £267,480 with no long-term liabilities reported, suggesting a solid equity base. However, current liabilities (£12,430) slightly exceed current assets (£11,650), resulting in a modest net current asset position of £2,800, which may constrain short-term liquidity. The absence of detailed profit and loss data limits assessment of profitability and cash flow generation. Given these factors, credit approval can be granted conditionally, subject to ongoing monitoring and possibly requiring additional collateral or guarantees for larger credit lines.

2. Financial Strength:
   The balance sheet is relatively strong for a micro-entity with shareholders’ funds at £267,480, indicating good capitalization relative to company size. Fixed assets are modest (£16,250), implying limited capital investment and potentially lower depreciation charges. The company carries no long-term debt, which reduces financial risk. However, the current assets (£11,650) are slightly less than current liabilities (£12,430), though net current assets are positive at £2,800 after considering prepayments and accrued income. This suggests working capital is adequate but tight, warranting caution.

3. Cash Flow Assessment:
   Direct cash flow data is not provided, but working capital is positive, albeit small. The current liabilities level relative to current assets indicates that the company must manage receivables and payables efficiently to maintain liquidity. The stable employee count (14) suggests ongoing operational activity, but without turnover or profit figures, it is difficult to confirm cash generation ability. The substantial share capital paid up (£248,430) acts as a buffer for cash flow fluctuations.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio should be tracked in future filings to detect any deterioration in short-term financial health.
• Profitability trends: Monitor future profit and loss accounts to assess ability to generate operating cash flow.
• Debtor and creditor days: Efficient management of working capital is critical given the tight net current assets.
• Director conduct and company status: No negative records currently, but ongoing vigilance is necessary.
• Industry risks: Construction is cyclical; external economic conditions could impact performance.