Company Number: 12418243

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MNA Bookkeeping Services Ltd demonstrates ongoing operations with a modest but positive net asset base. However, the significant decline in net current assets from £2,467 in 2023 to £796 in 2024 signals a weakening short-term financial cushion. Given the micro-entity scale and limited capitalization (£100 share capital), the company’s ability to service debt is currently adequate but vulnerable to cash flow disruptions. Approval is recommended with conditions, such as monitoring liquidity closely and potentially requiring personal guarantees or collateral for credit facilities.

2. Financial Strength:
   The company’s balance sheet is small and lightly capitalized, consistent with a micro-entity in bookkeeping services. Net assets have decreased from £2,467 to £796 over the past year, reflecting either increased current liabilities or a reduction in current assets. The total assets less current liabilities figure matches net assets at £796, indicating no fixed assets or long-term liabilities. The equity base remains low but positive. This limited financial buffer constrains the company’s resilience to operational setbacks or economic downturns.

3. Cash Flow Assessment:
   Current assets (£4,331) exceed current liabilities (£3,535), resulting in positive net current assets of £796. This indicates the company can cover its short-term obligations but with a thin margin. The drop in net current assets compared to the prior year suggests tighter liquidity, which may pose risks if unexpected expenses arise or receivables are delayed. The company employs one staff member, implying low fixed payroll costs, which is favorable for cash flow management in the short term.

4. Monitoring Points:

• Net current assets: Watch for further deterioration which would affect liquidity.
• Trend in current liabilities: Any sharp increase could strain working capital.
• Profitability and cash flow from operations: Since no detailed P&L data is provided, obtaining periodic management accounts is recommended.
• Directors’ conduct and credit behavior: No adverse records noted; continue to monitor for changes.
• Timely filing of accounts and confirmation statements: Currently up to date.