MOBILE IT LTD

Executive Summary

Mobile IT Ltd is a very recently incorporated entity with minimal financial resources and no trading history, resulting in a weak financial position and low liquidity. The company is currently unable to demonstrate the capacity to service debt or manage credit risk, leading to a recommendation to decline credit facilities at this stage. Close monitoring of future trading performance and financial improvement is essential before reconsidering credit exposure.

MOBILE IT LTD - Analysis Report

Company Number: 15152713

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: DECLINE
   Mobile IT Ltd is a newly formed private limited company with less than one full year of trading history and minimal financial resources. The latest accounts show very limited cash (£400), negligible net assets (£400), and accumulated losses (£600). There is no operating profit or indication of revenue generation yet, and the company has no employees. The director is the sole shareholder and controller, which concentrates risk without diversification. Given the absence of trading history, weak financial base, and lack of liquidity, the company does not currently demonstrate the capacity to service debt or meet credit obligations. Without evidence of operational cash flow or business growth, extending credit would be high risk.

2. Financial Strength:
   The balance sheet as of the 2024 year-end is very weak. The company holds only £400 in cash with net current assets equal to that amount, indicating extremely limited working capital. Shareholders’ funds stand at £400, reflecting initial share capital of £1,000 offset by losses of £600. There are no fixed assets or other material resources. The small capital base and negative retained earnings position show the company is at a very early stage of development with no buffer against financial stress.

3. Cash Flow Assessment:
   Cash at bank is minimal (£400) and there is no indication of positive operating cash flow or receivables. The company has no employees and presumably limited overheads, but also no revenue reported. This lack of liquidity and working capital means the company cannot comfortably meet short-term obligations or absorb unexpected costs. The cash position is fragile and would be insufficient to cover any significant credit facility repayments or supplier payments.

4. Monitoring Points:

• Monitor next financial statements for evidence of revenue generation, profitability, and improved cash balances.
• Watch for increases in working capital and shareholder equity to gauge capital injection or retained earnings.
• Track director’s actions regarding business development or securing contracts in the IT consultancy sector.
• Observe any changes in company structure, additional directors, or PSC changes indicating risk diversification.