MOURNE LANDSCAPES & DESIGN LTD

Executive Summary

Mourne Landscapes & Design Ltd is a newly established micro company showing positive equity growth and investment in fixed assets but limited liquidity and presence of notable long-term liabilities. Conditional credit approval is recommended based on continued monitoring of cash flow, profitability, and debt servicing ability. Strong management control by a single director provides governance stability but also concentration risk.

MOURNE LANDSCAPES & DESIGN LTD - Analysis Report

Company Number: 14673045

Analysis Date: 2025-07-29 16:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mourne Landscapes & Design Ltd, a micro private limited company operating in landscaping services, shows modest but improving financial strength since incorporation in 2023. The net assets have grown from £9,520 to £16,107 over two years, indicating positive equity build-up. However, the presence of long-term creditors (£14,872) and provisions (£6,216) as at 2025 suggests some financial obligations that require monitoring. Given the company’s young age and small scale, the credit facility should be approved conditionally, subject to ongoing financial performance review and confirmation of stable cash flow generation.

2. Financial Strength:
   The company’s balance sheet shows an increase in fixed assets from £11,001 to £34,627, reflecting investment in plant or equipment which is positive for operational capacity. Net current assets improved slightly to £2,568, indicating a small buffer in working capital. However, current assets declined from £11,468 to £6,193, which may indicate lower liquidity. Total liabilities include both current creditors (£3,964) and a significant amount of long-term creditors and provisions (£21,088 combined), which may strain resources. Shareholders’ funds have increased steadily, showing retained earnings or capital injections.

3. Cash Flow Assessment:
   Current assets consist primarily of cash, debtors, or stock, but their reduction in 2025 is a concern for liquidity. The net current assets remain positive but low, suggesting limited working capital flexibility. The company employs only one person (the director), minimizing payroll expenses which supports cash conservation. The director has not provided a profit and loss account, restricting detailed cash flow visibility. Overall, cash flow appears constrained and will require careful management to meet short-term obligations.

4. Monitoring Points:

• Liquidity trends: Watch current asset levels and net current assets closely to ensure adequate working capital.
• Long-term liabilities: Monitor repayments and provisions to avoid cash flow stress.
• Profitability and cash generation: Obtain profit and loss data to fully assess earnings quality and ability to service debt.
• Director’s conduct and business development: As sole director and majority shareholder, stability in management and growth plans will be critical.
• Filing timeliness: Continue monitoring compliance with accounts and confirmation statements to avoid regulatory penalties.