Company Number: 13152026

Analysis Date: 2025-07-20 14:40 UTC

1. Credit Opinion: APPROVE with low risk
   MHB Bookkeeping Limited is a micro-entity with a stable and improving financial position as evidenced by its net assets growth from £184 in 2023 to £4,258 in 2024. The company shows an ability to maintain positive working capital and the directors include a qualified Chartered Accountant, which suggests sound financial management. There are no overdue filings or negative company status indicators. The low fixed asset base and the nature of the business (bookkeeping) imply limited capital intensity and relatively predictable cash flow. The company’s small size and limited financial complexity mean the credit exposure is low.

2. Financial Strength:
   The balance sheet indicates a modest but positive net asset position that has improved significantly in the latest year. Current assets increased substantially to £29,634 against current liabilities of £25,484, yielding positive net current assets of £4,150. Fixed assets are minimal (£108), consistent with the service nature of the business. The increase in shareholders’ funds from £184 to £4,258 also reflects retained earnings or capital injection, strengthening the equity base. Overall, the company is solvent with no signs of financial distress.

3. Cash Flow Assessment:
   Current assets largely consist of cash and/or receivables (typical for bookkeeping firms), which cover current liabilities by a reasonable margin. The positive net current assets indicate adequate short-term liquidity to meet obligations. The absence of negative working capital reduces liquidity risk. However, detailed cash flow statements are not available, so assessment is based on balance sheet working capital metrics. Management’s accounting qualifications support the likelihood of prudent cash management.

4. Monitoring Points:

• Continued growth in net assets and positive working capital
• Timeliness and completeness of future filings to avoid compliance risk
• Profitability trends, once profit and loss accounts are available, to assess earnings stability
• Any significant changes in client base or payment terms that could affect receivables quality
• Directors’ ongoing involvement and absence of any adverse regulatory or financial events