Company Number: 14035727

Analysis Date: 2025-07-20 16:10 UTC

1. Credit Opinion: APPROVE
   Mauchi Limited demonstrates a strong liquidity position and positive net assets for a micro-entity in its early years. The company has no overdue filings, indicating good compliance and management oversight. Its increasing net current assets and shareholders’ funds suggest an improving financial position, supporting its ability to service debt. The absence of employees reduces fixed cost burdens, lowering operational risk. However, the company is relatively new (incorporated 2022) and small scale, so credit limits should be modest with regular monitoring.

2. Financial Strength:
   The balance sheet as of 30 April 2024 shows net assets of £129,359, up from £49,403 the prior year, reflecting retained earnings or capital injections. Current assets (£153k) comfortably exceed current liabilities (£23.7k), yielding net current assets of £129k, which implies strong short-term financial health and working capital sufficiency. The company holds no long-term liabilities reported, supporting a clean capital structure. As a micro-entity, fixed assets and employee costs are minimal or non-existent, reducing financial leverage and operational complexity.

3. Cash Flow Assessment:
   Current assets are primarily cash or receivables, providing liquidity to meet short-term obligations. Working capital is positive and has more than doubled in one year, indicating improved cash flow management or capital infusion. The absence of employees likely minimizes cash outflows, preserving cash reserves. Although detailed cash flow statements are not provided, the balance sheet position supports a healthy liquidity profile suitable for modest credit facilities.

4. Monitoring Points:

• Maintain oversight of receivables and payables aging to ensure working capital remains strong.
• Monitor any changes in business scale, especially if employee headcount increases, as this could raise fixed costs.
• Track annual filings and financial performance for any signs of deterioration or increased leverage.
• Review director and shareholder arrangements periodically for any changes in control or governance impacting financial risk.