Company Number: 13755171

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: APPROVE with Monitoring

MBK TECH SERVICES LTD is a recently incorporated small private limited company in the professional business support services sector. The company’s financials show positive net assets and improving equity over two years. Current liabilities are modest and well covered by current assets, indicating capacity to meet short-term obligations. The director holds full ownership and control, suggesting clear decision-making authority and accountability. However, given the company’s young age, small scale (single employee), and limited operating history, ongoing monitoring of revenue growth, profitability, and liquidity is prudent before extending larger or longer-term credit facilities.

2. Financial Strength

The balance sheet as of 30 November 2023 displays net assets of £9,446, up from £4,989 the prior year, reflecting accumulation of retained earnings. Tangible fixed assets of £6,666 were added in 2023, showing some investment in operational capacity. The company’s capital structure is entirely equity funded with no long-term debt aside from £10,000 other creditors due after one year, which appears manageable relative to equity. The modest but positive net current assets (£12,780) and cash balance (£14,559) support short-term financial stability.

3. Cash Flow Assessment

Cash at bank decreased slightly from £16,159 in 2022 to £14,559 in 2023, which is not a significant concern given the company’s scale. Current liabilities primarily comprise taxes and social security (£1,779), well covered by cash and other current assets, resulting in positive working capital. The company’s cash generation capacity cannot be fully assessed due to absence of detailed profit and loss data, but the increase in net assets and shareholders’ funds suggests profitable or at least break-even operations. The small employee base (1 average employee) limits payroll burden and supports manageable operating expenses.

4. Monitoring Points

• Revenue and profitability trends as future accounts become available to confirm sustainable earnings.
• Cash flow stability, especially monitoring cash balances relative to tax and creditor obligations.
• Changes in creditor profile, particularly the £10,000 due beyond one year, to ensure no material increase in leverage.
• Director’s engagement and operational expansion plans, given sole ownership and limited current scale.
• Timely filing of future accounts and confirmation statements to maintain compliance and transparency.