MARTOPS CONSULTING LTD

Executive Summary

Martops Consulting Ltd is a newly formed, small-scale management consultancy with modest but positive net assets and a sound liquidity position for its size. The company is currently financially stable but limited in scale and trading history, warranting conditional credit approval with close monitoring of cash flow, debtor collections, and profitability. The business appears well-managed by its sole director, though its ability to service larger credit facilities remains to be demonstrated over time.

MARTOPS CONSULTING LTD - Analysis Report

Company Number: 15077181

Analysis Date: 2025-07-20 14:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Martops Consulting Ltd is a newly incorporated private limited company (since August 2023) operating in management consultancy (SIC 70229). Its first set of accounts to 31 August 2024 shows a modest net asset base (£4,529) and positive net current assets (£3,422), indicating a small but positive working capital position. The company is solely owned and managed by Ms Claire Martin, who holds 75-100% control and has no evident director disqualifications or adverse history. However, given the company’s very short operating history, limited scale, and modest financial base, credit facilities should be approved conditionally, subject to ongoing monitoring of trading performance, cash flow, and debtor collections.

2. Financial Strength:
   The balance sheet shows total fixed assets of £1,107 (mainly office equipment and fixtures), current assets of £36,251 (predominantly cash £28,992 and debtors £7,259), and current liabilities of £32,829. The net current assets (working capital) is positive but small at £3,422, reflecting a tight liquidity position. Shareholders’ funds stand at £4,529, reflecting retained earnings accumulated since incorporation. There are no long-term liabilities, which is positive. The company currently qualifies as a small entity and benefits from exemption from audit. The limited asset base and equity suggest limited financial strength, typical for a new consulting business.

3. Cash Flow Assessment:
   Cash at bank of £28,992 is a strong liquidity indicator for the size and age of the company, suggesting adequate short-term cash resources to meet immediate obligations. Debtors of £7,259 represent amounts due from customers, and timely collection will be critical to maintaining liquidity. Current liabilities of £32,829 include taxation and social security (£8,235) and other creditors (£24,594), indicating near-term obligations that require careful cash management. The positive net current assets suggest the company can meet short-term liabilities but has limited cushion for unexpected events or delays in receivables.

4. Monitoring Points:

• Cash flow trends and working capital management to ensure ongoing ability to meet liabilities on time.
• Debtor aging and collection effectiveness to avoid liquidity strain.
• Profitability and turnover growth in subsequent periods to build equity base and improve financial resilience.
• Director’s adherence to prudent financial management and timely filings to maintain regulatory compliance.
• Any incremental borrowing requirements and related repayment capacity as the business develops.