Company Number: 12705014

Analysis Date: 2025-07-29 14:27 UTC

1. Credit Opinion: APPROVE with monitoring.
   MGT Supplies Ltd is a micro private limited company with a stable and improving financial position. The company shows a significant increase in net current assets and net assets in the latest financial year, indicating improved liquidity and capital structure. The directors hold full control and have maintained compliance with filing deadlines. No adverse indicators such as overdue filings, insolvency, or director disqualifications are present. However, as a relatively young and small entity with limited trading history and a single employee, ongoing monitoring of cash flow and profitability is advised before extending larger credit facilities.

2. Financial Strength:
   The company’s balance sheet at 30 June 2024 shows net assets of £26,654, up sharply from £1,161 the previous year. Current assets increased to £37,614, primarily cash or receivables, against current liabilities of £10,435, yielding strong positive working capital of £27,179. This indicates an improved ability to meet short-term obligations. Share capital is nominal at £60, typical for micro entities. The company is well within micro-entity thresholds and shows a solid equity base relative to liabilities, suggesting reasonable financial resilience for its size.

3. Cash Flow Assessment:
   Current assets to current liabilities ratio is approximately 3.6x, reflecting healthy liquidity. The increase in net current assets suggests improved operational cash flow or asset management. However, the absence of detailed P&L or cash flow statements limits insight into profitability and cash generation trends. The company employs only one person, indicating low fixed overheads, which may help preserve cash flow. Monitoring debtor aging and cash conversion cycles will be important to ensure liquidity remains strong.

4. Monitoring Points:

• Maintain up-to-date accounts and confirmation statements to avoid compliance risk.
• Monitor profitability and cash flow trends once full accounts including profit and loss are available.
• Watch for any material changes in current liabilities or working capital to avoid liquidity strain.
• Review director conduct and corporate governance given sole control by two directors with full voting rights.
• Keep track of any expansion plans that might increase financial risk or working capital requirements.