Company Number: 14562997

Analysis Date: 2025-07-29 18:36 UTC

1. Credit Opinion: CONDITIONAL approval is recommended. MK76 SERVICES LTD is a very young micro-entity in the construction installation sector, incorporated just over a year ago. The company’s net assets and working capital are positive but extremely modest (£732). The single director and sole shareholder, Martin Kolev, appears to have full control and responsibility. Given the limited financial scale, lack of trading history beyond one year, and thin asset base, credit exposure should be limited and closely monitored. Approval is suitable for small credit lines or trade facilities with frequent review.

2. Financial Strength: The balance sheet shows total net assets of £732 at the 2023 year-end, with current assets of £785 and current liabilities of £3,798. However, the accounts include prepayments and accrued income of £3,745, which suggests some timing differences affecting working capital. The company’s capital is entirely equity-funded with no long-term liabilities. The balance sheet is very small, typical for a micro-entity, and while net current assets are positive, the margin is thin. The company’s financial position is fragile but not insolvent.

3. Cash Flow Assessment: Cash or equivalents are minimal at £785, and current liabilities exceed this amount, indicating potential liquidity constraints. The positive net current assets are driven largely by prepayments and accrued income rather than cash or receivables. This implies working capital is limited, and the company may depend on timely payments from clients or additional funding from the director to maintain operations. The small scale and single employee base reduce overheads but also limit operating cash inflows. Close attention to cash flow timing is warranted.

4. Monitoring Points:

• Quarterly updates on cash balances and current liabilities to detect any liquidity deterioration.
• Payment behavior on any credit extended to the company.
• Evidence of incoming contracts or revenue growth to support improved cash flows.
• Director’s financial support or guarantees given the company’s small equity base.
• Timely filing of statutory returns and accounts to avoid penalties and maintain transparency.