MOORSIDE GARAGE (SW) LTD

Executive Summary

Moorside Garage (SW) Ltd has shown financial recovery with positive net assets in its latest year, but ongoing negative working capital and prior losses present moderate liquidity and solvency risks. The company’s small size and single director/shareholder structure underscore the need for careful review of cash flows and governance. Overall, while regulatory filings are up to date, further due diligence is recommended to confirm operational stability and funding sources.

MOORSIDE GARAGE (SW) LTD - Analysis Report

Company Number: 13528472

Analysis Date: 2025-07-20 16:00 UTC

1. Risk Rating: MEDIUM
   Moorside Garage (SW) Ltd shows signs of recovering financial health after previous years of net liabilities; however, persistent negative working capital and reliance on director funding create solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities (£-25,909 in 2024), indicating potential liquidity issues in meeting short-term obligations.
• History of Net Liabilities: In the prior two financial years (2022 and 2023), the company had negative net assets of £-14,325, suggesting prior financial instability and potential solvency risk.
• Dependence on a Single Director and Shareholder: Miss Ann Elizabeth Ellis controls 75-100% of shares and voting rights, which may raise governance and continuity risks if circumstances change.

3. Positive Indicators:

• Improvement in Net Assets: The net assets position has improved significantly to £6,684 in 2024, reversing prior losses, which may reflect positive operational changes or capital injections.
• Stable Fixed Asset Base: Fixed assets have remained stable around £37,000, indicating some tangible asset backing.
• Up-to-date Filings: The company is current with statutory filing requirements (accounts and confirmation statements), indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of any director loans or related-party transactions that may support the company’s liquidity.
• Review cash flow statements (not provided) to assess operational cash generation and ability to cover current liabilities.
• Examine any contingent liabilities or off-balance sheet obligations that could affect solvency.
• Assess customer base and revenue trends to evaluate operational sustainability given the micro-entity scale and small employee base.
• Confirm absence of any regulatory or legal issues given the sole director structure.