Company Number: SC672726

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Millar's Property Group Ltd shows a significant turnaround in financial health in the latest year, moving from net liabilities and negative shareholders' funds to positive net assets (£11,454) and net current assets (£5,542). This improvement suggests better management of liabilities and working capital. However, the company's history of net liabilities and reliance on director advances (£3,020) indicates some prior financial stress. Approval for credit facilities should be conditional on continued monitoring of cash flow, prompt filing compliance, and verification of ongoing business performance.

2. Financial Strength:
   The balance sheet at 30 September 2024 reveals net assets of £11,454, recovering from a negative net asset position of £(11,358) the prior year. Fixed assets are modest at £7,927, mainly motor vehicles and plant & machinery. Current assets (£26,056) exceed current liabilities (£20,514), providing a positive working capital position. The company has provisions for deferred tax (£2,015), reflecting taxable timing differences. Overall, the company now presents a small but positive equity base and improved liquidity, strengthening its financial position compared to previous years.

3. Cash Flow Assessment:
   Cash at bank increased to £21,425, up from £18,850, indicating improved liquidity. Current liabilities have reduced significantly from £31,808 to £20,514, easing short-term debt pressures. Debtors rose to £4,631, including a director's current account advance of £3,020, which should be monitored for recoverability. Net current assets are positive at £5,542, suggesting the company can meet short-term obligations. The improvement in cash and working capital suggests the company has enhanced its operational cash flow and liquidity management, but ongoing cash flow discipline is essential.

4. Monitoring Points:

• Continued improvement or stability in net assets and working capital, avoiding a return to net liabilities.
• Timely settlement of current liabilities, especially related party balances and tax obligations (noting a significant corporation tax creditor).
• Cash flow from operations to support further asset purchases and debt servicing without additional director loans.
• Management of deferred tax provisions and any impact on future cash outflows.
• Ongoing filing compliance and any changes in director or ownership structure that may affect governance or control.