MORGAN THREE WHEELER WORKSHOP LTD

Executive Summary

Morgan Three Wheeler Workshop Ltd is a small but financially stable company showing improving net asset growth and strong liquidity supported by positive working capital. The company’s financial trajectory appears sound with no immediate credit concerns, making it a suitable candidate for credit approval within typical SME lending parameters. Ongoing monitoring should focus on maintaining liquidity and profitability as the business develops.

MORGAN THREE WHEELER WORKSHOP LTD - Analysis Report

Company Number: 13580753

Analysis Date: 2025-07-20 19:06 UTC

1. Credit Opinion: APPROVE
   Morgan Three Wheeler Workshop Ltd demonstrates a positive financial position consistent with a micro-entity engaged in vehicle maintenance and repair. The company shows steady growth in net assets and net current assets, indicating improving balance sheet strength. The director has maintained compliance with filing deadlines and the company is active, with no adverse events such as liquidation or administration. The company's modest scale and low fixed asset base limit exposure, and current assets significantly exceed current liabilities, supporting short-term liquidity. Given these factors, the company is considered creditworthy for typical SME lending facilities, assuming no unusual risk exposures.

2. Financial Strength:
   The balance sheet reveals a solid equity base of £29,276 at the 2024 year end, up from £18,701 in 2023, reflecting retained earnings or capital injections. Fixed assets are minimal (£731), appropriate for a service workshop with likely limited capital expenditure on equipment. Current assets (£79,230) are comfortably above current liabilities (£50,384), resulting in net current assets (working capital) of £28,846, which is a positive indicator of liquidity. The company’s net assets have increased by over 50% year on year, demonstrating a strengthening financial position and prudent management of resources.

3. Cash Flow Assessment:
   The substantial increase in current assets, largely driven by cash or debtors (not detailed), alongside manageable current liabilities, suggests adequate liquidity to meet short-term obligations. The net current assets position indicates working capital adequacy to support ongoing operations without immediate refinancing needs. With an average of only 2 employees and low overhead implied by micro-entity status, cash flow pressures are likely minimal. The absence of overdraft or loan details limits full cash flow analysis, but available data points to reasonable short-term financial resilience.

4. Monitoring Points:

• Monitor debtor collection periods and cash conversion cycle to ensure working capital remains strong.
• Watch for any significant increases in current liabilities or fixed asset investments that might strain liquidity.
• Track profitability trends in future accounts to confirm continued growth in net assets.
• Keep an eye on director changes or any regulatory filings that might indicate emerging governance issues.
• Review any expansion plans that could impact financial stability given the company’s current micro scale.