MARTIN REVELL LTD

Executive Summary

MARTIN REVELL LTD shows improving financial stability with positive net asset growth and adequate liquidity for its size, supported by director commitment. The company’s small scale and limited operational resources warrant a conditional credit approval, contingent upon continued director support and regular monitoring of cash flow and business performance. The modest asset base and working capital position suggest manageable risk but limited financial resilience.

MARTIN REVELL LTD - Analysis Report

Company Number: 12926997

Analysis Date: 2025-07-20 13:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MARTIN REVELL LTD demonstrates modest but improving financial stability typical of a micro-entity in early years of trading. The company’s net assets have roughly doubled from £1,224 in 2023 to £2,480 in 2024, indicating positive equity growth. However, the small scale, limited employee base (average 1 employee), and modest turnover (not explicitly stated but implied by micro entity status) suggest limited capacity to absorb financial shocks or rapid growth demands. The directors’ ongoing support is critical for continuity, as noted in the going concern statement. Therefore, credit approval is conditional on monitoring cash flow closely and confirmation of director support continuing.

2. Financial Strength:
   The balance sheet shows net assets of £2,480 as of 31 October 2024, up from £1,224 the prior year. Fixed assets increased substantially from £425 to £1,459 due to computer equipment acquisitions, reflecting investment in operational capacity. Current assets have decreased from £3,349 to £1,540, but current liabilities have also fallen sharply from £2,550 to £519, improving working capital. Overall, the company maintains a positive net current asset position (£1,021) and a clean capital structure with minimal share capital (£6). The financial health is stable but limited in scale.

3. Cash Flow Assessment:
   Current assets consist likely of cash and receivables, totaling £1,540, which covers current liabilities of £519 comfortably, indicating adequate short-term liquidity. The increase in net current assets year on year (+£222) supports ongoing operational needs. There is no indication of significant bank borrowings or external debt, reducing financial risk but also indicating limited external financing. The company relies on director support, which is positive but should be verified periodically.

4. Monitoring Points:

• Cash flow and liquidity levels: Ensure current assets consistently cover current liabilities.
• Director support and related party transactions: Validate ongoing commitment to funding or guarantees.
• Profitability and turnover trends: Micro-entity status limits disclosure, so request management accounts if needed.
• Asset utilization: Monitor fixed asset investments against revenue growth to assess efficiency.
• Employee headcount and operational scalability: With only one employee, operational risks and continuity depend heavily on key individuals.