MOOSTER DISTRIBUTION LTD

Executive Summary

Mooster Distribution Ltd has demonstrated a modest financial recovery in its latest year, moving from net liabilities to a small positive net asset base. However, the company remains financially fragile with minimal working capital and no fixed assets, requiring cautious credit exposure. Conditional approval is recommended with strict monitoring of liquidity and ongoing financial performance.

MOOSTER DISTRIBUTION LTD - Analysis Report

Company Number: 13546803

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mooster Distribution Ltd is an active micro private limited company engaged in retail sale of flowers, plants, pet food, and related products. The company shows a positive turnaround in its financial position in the latest year, moving from net liabilities in prior years to a small net asset position (£3,923). However, the absolute size of net assets and working capital is minimal, indicating a fragile financial base. The director is the sole significant controller, suggesting concentrated management but no evidence of mismanagement or director disqualification. Given the small scale and limited financial buffer, credit facilities may be approved conditionally with prudent limits and regular monitoring.

2. Financial Strength:

• Fixed assets are nil, so the company has no long-term tangible asset base.
• Current assets increased to £11,063 from negligible amounts previously, indicating some improvement in liquid resources.
• Current liabilities of £10,730 are almost fully matched by current assets, producing net current assets of only £333, which is a very narrow working capital margin.
• Total net assets have shifted from negative (£-4,208 in 2023) to a positive £3,923 in 2024, reflecting a recovery but still very modest equity.
• Shareholders’ funds mirror net assets, confirming no hidden liabilities.

3. Cash Flow Assessment:

• The company’s current assets are primarily cash or equivalents, given the micro-entity scale and no fixed assets.
• Current liabilities are close to current assets, indicating tight liquidity.
• The working capital position is marginally positive but insufficient to absorb material shocks or delays in receivables.
• The company employs only one person (the director), limiting payroll obligations but also indicating a lean operational structure.
• No evidence of long-term debt, which reduces financial risk but also limits leverage capacity.

4. Monitoring Points:

• Monitor net current assets closely to ensure the company maintains positive working capital.
• Watch for changes in creditors due after more than one year, as the notes indicate £4,256 in longer-term liabilities in 2024 that were not present previously.
• Track turnover and profitability trends in subsequent filings to confirm whether the positive net asset position is sustainable.
• Keep an eye on director’s financial conduct and any changes in ownership or control.
• Review timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.