Company Number: 13526958

Analysis Date: 2025-07-20 13:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Maxi Logistics Services Ltd is a very small, recently incorporated private limited company showing modest financial scale and limited net asset base (£1,305 as of May 2024). The company’s current assets slightly exceed current liabilities, indicating a positive but very thin working capital buffer. The business appears stable with incremental growth in cash and debtors year-over-year, but the tight liquidity and minimal net equity mean credit risk is elevated. Approval for credit facilities can be considered conditionally, subject to close monitoring of cash flow and debtor collections, and possibly limits on exposure until a stronger financial base is established.

2. Financial Strength:

The company’s balance sheet shows total current assets of £65,603 against current liabilities of £64,298, resulting in net current assets (working capital) of only £1,305. Net assets and shareholders’ funds are equally minimal at £1,305, reflecting a very small capital base (100 shares at £1 each). There are no fixed assets reported, so the company relies entirely on working capital and cash for operations. The incremental growth in cash (£37,621 vs. £24,980 prior year) and debtors (£27,982 vs. £7,437) indicates expanding business activity but also exposes the company to debtor risk. The small equity base limits financial resilience to adverse events.

3. Cash Flow Assessment:

Cash balances have nearly doubled over the last year, which is positive for liquidity. However, current liabilities have also doubled, limiting net working capital improvement. Debtors have grown substantially, indicating the company is extending more credit to customers, which may strain cash flow if collections slow. The company has only one employee, suggesting low overhead costs, which helps conserve cash. Overall, liquidity is adequate for current scale but vulnerable to any delay in debtor payments or unexpected expenses. Strong debtor management and cash flow forecasting are essential.

4. Monitoring Points:

• Debtor aging and collection effectiveness: rising debtors could impair liquidity if not managed.
• Cash flow trends and sufficiency to cover liabilities as they fall due.
• Changes in current liabilities, especially any new borrowing or payables.
• Profitability trends (not disclosed here) to assess ongoing earnings capacity.
• Any increase in share capital or retained earnings to strengthen equity base.
• Director’s conduct and business continuity given the single director and PSC control.