MOVE FOR YOU REMOVALS LTD

Executive Summary

MOVE FOR YOU REMOVALS LTD exhibits severe financial weakness with negative net assets and a large liquidity shortfall at 31 May 2024. The company is currently unable to meet its short-term liabilities from available assets, presenting a high credit risk. Without significant improvement in cash flow or capital structure, extending credit is not recommended at this time.

MOVE FOR YOU REMOVALS LTD - Analysis Report

Company Number: 12607700

Analysis Date: 2025-07-29 14:43 UTC

1. Credit Opinion: DECLINE
   MOVE FOR YOU REMOVALS LTD’s most recent accounts show significant financial distress. The company reported net liabilities of £36,014 at 31 May 2024, a deterioration from net liabilities of £19,262 the prior year. This negative net asset position indicates the company’s liabilities exceed its assets, which raises concerns about its ability to meet debt obligations. Additionally, current liabilities of £41,941 far exceed current assets of £1,015, resulting in a large negative working capital position. Such liquidity weakness suggests an inability to cover short-term obligations without external support. Given these factors, the credit risk is high and approval of credit facilities would be imprudent without substantial mitigating information or guarantees.

2. Financial Strength:
   The balance sheet demonstrates weakened financial strength. Fixed assets have declined from £6,559 to £4,912, indicating possible asset disposals or depreciation. More critically, current liabilities have increased sharply from £32,122 to £41,941, while current assets have dropped drastically from £6,301 to £1,015. This led to a negative net current asset position of -£40,926, which is a significant deterioration compared to the previous year’s -£25,821. The company’s equity has turned negative, reflecting accumulated losses and an erosion of shareholder funds. Such a balance sheet profile is typical of a company under financial strain and signals high risk for creditors.

3. Cash Flow Assessment:
   The financial data reveals poor liquidity and working capital management. The company’s current liabilities are over 40 times the level of current assets, indicating very limited cash or liquid assets to meet immediate bills. With only 3 employees on average, the operational scale appears small, but the negative working capital suggests cash flow problems may be systemic. There is no evidence of cash reserves or short-term assets that could be readily converted to cash. Without positive cash flow from operations or access to external finance, the company is unlikely to service new debt or short-term credit lines effectively.

4. Monitoring Points:

• Monitor quarterly cash flow statements and bank balances to assess liquidity trends.
• Watch for any formal restructuring, insolvency proceedings, or director changes that may impact credit status.
• Review updated accounts for changes in net asset position and working capital.
• Evaluate any new financing or capital injections that could improve balance sheet strength.
• Track payment history and any late or missed payments to suppliers or creditors.