MAT ARCHITECTURE LTD

Executive Summary

MAT ARCHITECTURE LTD is a small, young architectural services company with minimal equity and a tight working capital position. While the company shows some growth in current assets and cash, the substantial increase in creditors and limited net assets warrant cautious credit extension with close liquidity monitoring. Credit approval is conditional, emphasizing prudent limits and ongoing oversight of cash flow and creditor terms.

MAT ARCHITECTURE LTD - Analysis Report

Company Number: 13512759

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. MAT ARCHITECTURE LTD is a very young, small private limited company operating in architectural and design services. The company shows a positive but minimal net asset base (£346) and net current assets (£346) at the latest year-end, indicating a very thin equity buffer. The increase in current assets and liabilities from 2023 to 2024 suggests expansion, but the large jump in "other creditors" (£20,265) compared to the prior year raises some concerns about short-term obligations and creditor terms. The director appears to be the sole significant controller, which can be positive for decision-making but increases single-person risk. Given the small scale, limited trading history (since 2021), and thin net assets, credit should be extended with caution and likely subject to limits and close monitoring.

2. Financial Strength:
   The balance sheet shows very limited equity (£346) and net current assets (£346) relative to current liabilities (£25,868), indicating a tight working capital position. The company has no fixed assets reported, relying solely on current assets like debtors (£19,291) and cash (£6,923). The large increase in creditors, especially other creditors, may indicate deferred payments or accrued expenses which need to be scrutinized for timing and nature. Share capital remains minimal (£100), and retained earnings are small (£246). The company meets small company criteria and has no audit requirement, which limits transparency. Overall, financial strength is weak but not immediately alarming given the nature of the business and early stage.

3. Cash Flow Assessment:
   Cash increased from £4,289 to £6,923 year on year, which is positive, but cash remains modest. Debtors form a significant part of current assets, which may impact liquidity if collection terms are extended or payments delayed. Current liabilities are almost 4 times the cash on hand, indicating potential liquidity risk if creditors demand payment quickly. Net current assets are positive but marginal, meaning the company has limited buffer to absorb cash flow shocks. Monitoring debtor aging and creditor payment terms is critical. The company employs only one person, which limits payroll burden but also suggests limited operational scale.

4. Monitoring Points:

• Track debtor collection efficiency and aging to ensure cash inflows are timely.
• Clarify the composition and terms of "other creditors" (£20,265) to assess payment risk.
• Monitor cash balances relative to liabilities to avoid liquidity shortfalls.
• Watch profitability trends and accumulation of retained earnings to build equity buffer.
• Keep oversight on director and ownership changes given single-person control risk.
• Review any upcoming filings to confirm continued compliance and financial performance.