Company Number: 13122890

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MOTA & SONS CONSULTANCY LTD is a very small, micro-entity company operating in management consultancy and related advisory services since 2021. The company maintains a positive net current asset position and has no employees, indicating a lean cost base. However, net assets have declined sharply from £1,197 in 2023 to £119 in 2024, primarily due to the recognition of longer-term creditors (£1,250), signaling some financial strain. The modest scale and limited financial buffer mean lending should be cautious and contingent on updated financial information and clear plans for cash flow management.

2. Financial Strength:
   The balance sheet shows low asset and equity levels consistent with a micro-entity profile. Current assets increased from £1,197 to £6,369 year-on-year, likely reflecting higher cash or receivables, but current liabilities also rose to £5,000. The recognition of £1,250 creditors due after one year has severely eroded net equity to £119. This thin equity base suggests limited capacity to absorb losses or financial shocks and an increased risk of solvency issues if liabilities grow or revenue contracts.

3. Cash Flow Assessment:
   The company’s positive net current assets of £1,369 indicate that short-term obligations can be met with available current assets. However, the lack of employees and small scale suggests limited operational cash generation. The rise in creditors, especially those due after more than one year, raises questions about long-term liquidity and debt servicing capacity. Without detailed cash flow statements, it is prudent to monitor cash inflows closely to ensure the company can meet upcoming liabilities.

4. Monitoring Points:

• Monitor net asset trends and creditor balances in future filings for signs of worsening financial health.
• Track cash flow statements or bank statements to confirm liquidity adequacy.
• Review any changes in share capital or new financing arrangements that may bolster the equity base.
• Watch for timely payment of creditors to avoid default risk and reputational damage.
• Verify if the company plans to increase staffing or operational scale, which may impact working capital needs.