MATTB CUSTOMS LIMITED

Executive Summary

Mattb Customs Limited is a micro-sized private company showing steady improvement in financial position with positive net assets and working capital. The company relies on director loans and maintains a narrow liquidity margin, warranting conditional credit approval with close monitoring of cash flow and financial filings. Continued operational and financial discipline is critical to support credit extension.

MATTB CUSTOMS LIMITED - Analysis Report

Company Number: 12923684

Analysis Date: 2025-07-20 17:18 UTC

1. Credit Opinion: APPROVE with conditions
   Mattb Customs Limited demonstrates modest but consistent growth in net assets and working capital over the last three years, indicating improving financial stability. The company operates in a niche market (custom sneaker design), which may limit rapid scale but also supports differentiation. The director has advanced funds to the company, showing personal commitment. However, the micro-sized entity has limited capital reserves and relatively high current liabilities, which suggest close liquidity management is essential. Credit can be extended on a conditional basis, subject to continued timely financial reporting and monitoring of liquidity and debtor collections.

2. Financial Strength:
   The balance sheet shows strengthening shareholder funds, increasing from £313 in 2020 to £16,322 in 2023, reflecting retained earnings and asset growth. Fixed assets are low (£9,104) relative to current assets (£111,835), which are mostly likely cash, receivables, or inventory. Current liabilities remain high at £104,617 but manageable given net current assets of £7,218. The company’s modest capital base (£100 share capital) and reliance on director loans (£44,964 owed to director as at 2023) indicate limited external funding and some reliance on insider financing.

3. Cash Flow Assessment:
   The positive net current assets position suggests the company is able to cover short-term obligations, but the narrow margin (£7,218) requires close liquidity monitoring. The increase in current assets from £75,533 to £111,835 in one year indicates improved cash or working capital availability. However, the relatively high current liabilities necessitate effective working capital management, especially collections and supplier payment terms. No audit means less assurance on cash flow quality, so periodic interim financial updates should be sought.

4. Monitoring Points:

• Liquidity ratios: current ratio and quick ratio to ensure ongoing ability to cover short-term debts.
• Director loan account: monitor for potential calls on cash and repayment plans.
• Receivables ageing and inventory turnover to assess working capital quality.
• Timely filing of accounts and confirmation statements to maintain transparency.
• Business revenue and profitability trends to gauge ongoing viability in a niche market.