Company Number: 12651088

Analysis Date: 2025-07-29 14:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mid Civils Limited demonstrates a stable financial position with positive net assets and working capital. However, the recent drop in net assets from £87,241 in 2023 to £74,254 in 2024, alongside increased taxation and social security creditors, suggests some short-term pressure on liquidity. The lack of a profit and loss account and limited turnover visibility restricts a full assessment of earnings stability. Credit approval is recommended with conditions including regular monitoring of cash flow and debtor collections, as well as ensuring timely payment of current liabilities.

2. Financial Strength:
   The company’s net assets remain positive at £74,254 as of June 2024, indicating a sound equity base. Fixed assets have increased to £38,701 mainly from capital expenditure on plant and machinery, which supports operational capacity. Current assets of £123,847 exceed current liabilities of £78,619, resulting in net current assets (working capital) of £45,228, a comfortable buffer to cover short-term obligations. The removal of long-term debt (£30,000 creditor in 2023) improves the balance sheet leverage. However, a provision for liabilities of £9,675 emerged in 2024, which requires further review to understand its nature and impact.

3. Cash Flow Assessment:
   Cash on hand has decreased from £57,402 in 2023 to £35,028 in 2024, indicating reduced liquidity. Debtors have also declined from £119,782 to £88,819, which may reflect improved collections or reduced sales; this should be clarified. The increase in taxation and social security creditors to £22,161 could indicate deferred tax payments, placing pressure on near-term cash flows. The company appears to maintain adequate working capital but needs to manage its cash conversion cycle carefully to avoid liquidity strain.

4. Monitoring Points:

• Track debtor aging and collection efficiency to ensure cash inflows remain steady.
• Monitor the nature and timing of provisions for liabilities to assess potential cash outflows.
• Review tax and social security creditor balances regularly to prevent payment defaults.
• Keep an eye on capital expenditure and asset disposals to confirm they are aligned with business growth and do not impair liquidity.
• Request future profit and loss statements to evaluate profitability trends and sustainability.