Company Number: 13577184

Analysis Date: 2025-07-20 15:16 UTC

1. Credit Opinion: APPROVE
   Mattphil Ltd demonstrates sufficient financial stability and liquidity to support credit facilities. Despite modest net current assets (£271 as of March 2025), the company maintains positive net assets (£4,187) and shareholders' funds, indicating an overall solvent position. The business operates in bookkeeping and accounting services, a sector with steady demand. No overdue filings or indications of distress are present, and the director has complied with statutory requirements. The increase in net assets and maintained cash balances support the ability to service debt. However, current liabilities remain relatively high compared to current assets, so monitoring working capital is advised.

2. Financial Strength:
   The balance sheet shows a small but growing equity base, with net assets rising from £3,301 in 2024 to £4,187 in 2025. Fixed assets are minor (£3,916) and primarily tangible computer equipment. The company’s capital structure is simple, with minimal share capital (£2) and profits retained within reserves. No long-term liabilities are reported, reducing financial risk. Overall, the company is financially stable but with limited asset backing and modest working capital, reflecting its small scale.

3. Cash Flow Assessment:
   Cash balances remain healthy at £19,271, representing most of current assets, which aids liquidity. Debtors are low (£405), indicating efficient collections or low credit exposure. Current liabilities are significant (£19,405), largely comprising accruals and deferred income (£13,500) and director’s loan account (£2,221). The net current assets position is positive but narrow (£271), suggesting tight working capital. The company’s cash position should enable it to meet short-term obligations, but limited buffer means cash flow should be closely managed.

4. Monitoring Points:

• Working capital management: Monitor fluctuations in current liabilities and cash to avoid liquidity strain.
• Debtor collections: Ensure receivables remain low and collectible.
• Director’s loan account: Watch for any changes in related party balances that may impact liquidity.
• Profitability trends: Review future accounts for sustained growth in retained earnings and net assets.
• Compliance: Maintain timely filing and regulatory compliance to avoid penalties or restrictions.