Company Number: 12406929

Analysis Date: 2025-07-20 18:56 UTC

1. Credit Opinion: APPROVE with caution
   Mobile Tyres 4 You Ltd shows a positive improvement in financial position over the latest year, with net current assets turning positive and net assets increasing from £29k to £37.6k. The company is active, with timely filings and no overdue returns, indicating sound compliance and management discipline. The company’s liquidity position is strong due to increased cash reserves. However, the overall asset base and shareholder funds remain modest, reflecting a small business scale. Given the limited scale and moderate liabilities, credit limits should be conservative and monitored closely for any fluctuations in working capital or creditor payments.

2. Financial Strength:
   The balance sheet reflects a small but stable business with fixed assets of £25.2k and current assets of £120.5k against current liabilities of £108.1k, resulting in net current assets of £12.4k (improved from a negative £4.6k last year). Net assets have increased by about 29% year-on-year, supported by retained profits. The company’s equity capital is nominal (£1), with all net assets arising from accumulated reserves. The asset base is concentrated in cash and receivables, with stock levels reduced significantly, potentially reflecting better inventory management or lower stockholding strategy.

3. Cash Flow Assessment:
   Cash at bank increased from £61k to £113k, indicating improved liquidity and cash flow generation capability. Debtors increased modestly but remain low relative to cash, suggesting effective collections. Current liabilities rose by £30k but remain manageable given cash and current assets. The positive net current assets indicate sufficient short-term liquidity to cover immediate debts. No audit was required, and no notes indicate significant contingent liabilities or off-balance sheet risks. The business appears to maintain adequate working capital to meet obligations and sustain operations.

4. Monitoring Points:

• Watch for ongoing cash flow from operations ensuring the cash balance remains strong to mitigate creditor payment risk.
• Monitor creditor balances and payment terms, especially "other creditors" which showed a large swing in value.
• Keep an eye on stock levels and turnover trends to avoid tying up excessive working capital.
• Ensure continued timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Monitor any changes in director status or PSC disclosures for governance risks.