ML LIGHTING CONSULTANCY LTD

Executive Summary

ML Lighting Consultancy Ltd is a micro private limited company with a stable balance sheet showing positive net assets and strong working capital. The company’s financial position and director control suggest it can meet current obligations, warranting credit approval for modest facilities. Ongoing monitoring of liquidity, asset growth, and profitability is recommended given its small scale and limited financial track record.

ML LIGHTING CONSULTANCY LTD - Analysis Report

Company Number: 14355495

Analysis Date: 2025-07-20 12:34 UTC

1. Credit Opinion: APPROVE ML Lighting Consultancy Ltd demonstrates adequate financial stability for a micro-sized entity with positive net assets and working capital. The company is active, with no overdue filings, and has a sole director and 100% controlling shareholder who appears engaged. The financials show no signs of distress or liquidity issues, supporting debt servicing capability. However, as a very small business with limited financial history and minimal fixed assets, credit limits should be modest and monitored closely.

2. Financial Strength: The balance sheet shows net assets of £11,180 as of September 2024, slightly decreased from £11,789 in 2023. Fixed assets increased from £479 to £5,183, indicating some investment in long-term assets. Current assets stand at £6,412 against current liabilities of only £415, resulting in strong net current assets of £5,997. The company maintains positive shareholders’ funds equal to net assets, which reflects sound equity capital without reliance on debt.

3. Cash Flow Assessment: Current assets primarily consisting of cash and receivables appear sufficient to cover current liabilities comfortably, indicating good short-term liquidity and working capital management. The low current liabilities suggest minimal short-term obligations, reducing liquidity risk. However, the decline in current assets from £17,108 to £6,412 year-on-year should be monitored to ensure it does not indicate reducing cash inflows or client payments.

4. Monitoring Points:

• Monitor ongoing cash flow and working capital to ensure current assets remain sufficient against liabilities.
• Watch for further growth or contraction in fixed assets to assess capital investment and business expansion.
• Track profitability and reserves once profit and loss accounts become available to assess earnings sustainability.
• Observe director’s engagement and company filings to maintain compliance and governance standards.
• Given the company’s small size and limited financial history, any major changes in trading conditions or credit exposure should be reviewed promptly.