MORGAN WILSON ROPE ACCESS SERVICES LTD

Executive Summary

Morgan Wilson Rope Access Services Ltd is a start-up with limited financial resources and negative working capital, relying heavily on director loans for funding. While there is some asset growth, liquidity is weak and credit exposure should be cautiously managed with close monitoring of cash flow and liabilities. Conditional approval with strict oversight and potential security requirements is recommended.

MORGAN WILSON ROPE ACCESS SERVICES LTD - Analysis Report

Company Number: SC728644

Analysis Date: 2025-07-29 16:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Morgan Wilson Rope Access Services Ltd is a very young company (incorporated 2022) operating in the roofing activities sector. The financials show a marginal net asset position (£1) and negative working capital (net current liabilities of £1,246 at 30 April 2024) indicating liquidity constraints. The company relies heavily on director advances (£6,608), which are unsecured and interest-free, to fund operations. While there is growth in fixed assets and debtors, the current liabilities and cash position are weak. The director is the sole significant controller, which centralizes decision-making but concentrates risk. Given these factors, credit exposure should be limited or supported by additional security or guarantees, and monitoring should be stringent.

2. Financial Strength:

• Fixed assets have increased from £579 to £1,540, showing some investment in plant & machinery.
• Current assets (£6,623) are insufficient to cover current liabilities (£7,869), resulting in negative net working capital of £1,246.
• Net assets remain negligible at £1, reflecting minimal equity and accumulated reserves.
• The company has a deferred tax liability of £293, further reducing net assets.
• Share capital is minimal (£1), indicating very limited shareholder funds backing the business.

3. Cash Flow Assessment:

• Cash at bank is virtually nil (£14), indicating very low liquidity.
• Debtors have increased (£6,609) but may be slow to convert to cash, stressing cash flow.
• Current liabilities have increased to £7,869, mainly taxation and social security (£7,005), which could pressure cash outflows.
• Director loans (£6,608) are a key source of funding, but the unsecured and interest-free nature poses recovery risk for the lender.
• Negative working capital and minimal cash suggest the company may struggle to meet short-term obligations without continued director support or external financing.

4. Monitoring Points:

• Liquidity trends, particularly cash balances and debtor collection periods.
• Timely payment of tax and social security liabilities to avoid penalties and enforcement actions.
• Changes in director loans and any formalization into repayable financing or equity.
• Profitability and cash generation once turnover figures become available.
• Any changes in company ownership or director structure that may impact control and risk.
• Filing of next accounts and confirmation statements on time to ensure compliance and transparency.