MT PETROCHEMICAL SERVICES LTD

Executive Summary

MT Petrochemical Services Ltd is an early-stage company with modest assets and limited working capital, reflecting its first year of trading. While it currently meets statutory filing requirements and shows no signs of distress, liquidity is tight and financial strength is limited. Credit approval is recommended on a conditional basis with close monitoring of cash flow and operational progress.

MT PETROCHEMICAL SERVICES LTD - Analysis Report

Company Number: 14557810

Analysis Date: 2025-07-29 21:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MT Petrochemical Services Ltd is a newly incorporated small private limited company operating in support activities for petroleum and natural gas mining. Given its first-year trading financials, the company shows limited working capital with net current liabilities and modest cash. However, shareholder funds are positive, and there are no overdue filings or signs of distress. Credit should be extended cautiously, with conditions such as regular monitoring of cash flow and receivables, given the negative net current assets and limited financial history.

2. Financial Strength:
   The company reports tangible fixed assets of £3,489 and cash of £6,920 against current liabilities of £7,616, resulting in net current liabilities of £696. Total net assets and shareholders’ funds stand at £2,793. This indicates a thin capital base with a small buffer to cover short-term obligations. The absence of long-term liabilities and the modest equity position reflect early-stage operations but limited financial strength. The company’s financial structure is fragile, with reliance on the director’s continued support.

3. Cash Flow Assessment:
   Cash reserves at £6,920 are marginally below current liabilities, suggesting potential liquidity constraints in meeting immediate obligations. The company currently employs only one person (the director), which keeps operating costs low but limits operational scale. The small negative working capital requires careful management of receivables and payables to maintain liquidity. Cash flow forecasting and monitoring will be critical as the business develops.

4. Monitoring Points:

• Liquidity trends, especially changes in net current assets and cash balances
• Timely filing of future accounts and confirmation statements to avoid compliance risk
• Revenue growth and profitability indicators once available, to assess repayment capacity
• Director’s ongoing financial support and any changes in ownership/control
• Creditors aging and tax liabilities, particularly social security and taxation amounts due
• Market conditions in petroleum support services sector, which can be cyclical