Company Number: 14194381

Analysis Date: 2025-07-29 15:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mitcheson Group Ltd is a recently incorporated micro private limited company engaged in quantity surveying, freight transport, and taxi operation. Financially, the company shows declining net assets and persistent net current liabilities over the last two years, indicating working capital stress. While the directors have supported the business with interest-free loans, the negative net current assets and reducing equity base raise concerns about short-term liquidity and operational cash flow sufficiency. Approval is conditional on close monitoring of liquidity improvements and confirmation of sustainable cash inflows from trading activities.

2. Financial Strength:
   The company's net assets have declined from £9,643 in 2023 to £5,446 in 2024, reflecting a reduction in equity and overall financial buffer. Fixed assets have decreased slightly but remain modest at £11,660. Current liabilities exceed current assets by £4,237 at the latest year end, indicating a net current liability position. The balance sheet shows a small capital base typical of a micro entity but with limited room for absorbing financial shocks. Director loans (£2,302) are present but unsecured and repayable on demand, providing some informal support.

3. Cash Flow Assessment:
   Negative net working capital is a concern, with current liabilities nearly triple current assets. This suggests tight liquidity and potential difficulties meeting short-term obligations without additional financing or improved cash generation. The average employee count is one, indicating minimal payroll pressure but also limited operational scale. The lack of audit exemption and micro-entity accounts suggest limited financial complexity but also less transparency. Cash flow projections or management accounts would be useful to confirm ongoing liquidity.

4. Monitoring Points:

• Working capital trends: Watch for reduction in net current liabilities and improvement in current asset coverage.
• Director loans: Monitor changes in director advances and repayments as a sign of informal funding reliance.
• Profitability and cash generation: Track income statement and cash flow statements to assess trading viability and sustainability.
• Filing and compliance: Ensure timely submission of accounts and confirmation statements to avoid regulatory risks.
• Management changes or strategic shifts: Note any significant director appointments or business pivots that could impact risk profile.