MOVING PROVISIONS LTD

Executive Summary

MOVING PROVISIONS LTD is a start-up with a weak financial position characterized by negative equity and a working capital deficit. The company’s minimal cash and lack of trading history present a high credit risk. Approval of credit facilities is not recommended until the company demonstrates improved financial stability and cash flow generation.

MOVING PROVISIONS LTD - Analysis Report

Company Number: 15435771

Analysis Date: 2025-07-20 17:18 UTC

1. Credit Opinion: DECLINE

MOVING PROVISIONS LTD is a newly incorporated company (since January 2024) operating in removal services. Its first financial statements show a net liability position with negative shareholders’ funds of £84 and net current liabilities of £84. The company holds minimal cash (£100) and carries creditors of £184, including a director’s loan account of £34. There is no evidence of trading income or employee costs, indicating very limited operational activity during the first financial year. This weak financial base and lack of trading history present a high risk profile with insufficient financial strength or liquidity to service debt obligations at present.

2. Financial Strength

The company’s balance sheet shows a net liability position of -£84, reflecting a negative equity base. There are no fixed assets, and current assets consist solely of £100 cash. Current liabilities exceed current assets, resulting in a working capital deficit of £84. The capital structure is minimal, with share capital of £100 and retained losses of £184. The absence of tangible assets or reserves diminishes the company’s ability to absorb financial shocks or secure external financing.

3. Cash Flow Assessment

Cash resources are extremely limited at £100 with no other current assets such as receivables or inventory to support liquidity. Current liabilities of £184 must be met within one year, creating a cash shortfall. The presence of a director’s loan account indicates reliance on related party funding to cover liabilities. There is no indication of operating cash inflows or profitability, raising concerns about the company’s ability to generate sufficient cash flow to meet ongoing obligations without further capital injections.

4. Monitoring Points

• Track future trading performance and profitability to establish a sustainable revenue base.
• Monitor cash flow closely, especially working capital movements and the director’s loan account.
• Watch for improvements in net assets and reduction of net current liabilities.
• Review any changes in capital structure or external financing arrangements.
• Assess management’s ability to execute business plans and improve operational activity.