MKR WEBTECH LTD

Executive Summary

MKR WEBTECH LTD exhibits a strengthening financial position with positive net assets and working capital as of July 2024, indicating improving creditworthiness. The company’s micro-entity status and small operational scale limit complexity but also constrain financial resilience. Conditional approval is recommended with ongoing monitoring of profitability and cash flow metrics to manage credit risk effectively.

MKR WEBTECH LTD - Analysis Report

Company Number: 14225321

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion:
   APPROVE with caution. MKR WEBTECH LTD, incorporated in 2022 and classified as a micro-entity, shows improving financial health with positive net assets and net current assets as of the latest accounts to 31 July 2024. The company is small, active, and operates in the IT consultancy sector, which typically has low capital intensity and reasonable cash flow prospects. However, as a very young company with limited financial history, the credit exposure should be kept modest and monitored closely.

2. Financial Strength:
   The company's net assets increased significantly from £111 in 2023 to £2,124 in 2024, reflecting a stronger equity base. Fixed assets are minimal (£499), indicating limited investment in long-term assets, which is typical for an IT consultancy. Current assets have grown substantially to £6,193, improving liquidity. Current liabilities rose but remain comfortably covered by current assets, resulting in positive net current assets of £1,625. Overall, the balance sheet shows a modest but improving financial position with low gearing risk.

3. Cash Flow Assessment:
   Current assets primarily include cash and receivables, sufficient to cover short-term liabilities. The net current asset position of £1,625 indicates adequate working capital to meet immediate obligations. The increase in current assets from £1,992 to £6,193 suggests improved cash inflows or receivables management. Given the company's small size and single employee structure, overheads are likely low, supporting positive cash flow dynamics. However, absence of profit and loss details limits deeper cash flow analysis.

4. Monitoring Points:

• Track turnover and profitability trends once full accounts including profit and loss are available to ensure sustainable cash generation.
• Monitor receivables aging and working capital efficiency to avoid liquidity strain.
• Watch for any increase in short-term liabilities that could pressure cash flow.
• Keep an eye on director conduct and company filings to ensure compliance and governance standards are maintained.
• Given the company's youth, review subsequent financial statements annually to confirm continued growth and stability.