MW CABLING SERVICES LTD

Executive Summary

MW CABLING SERVICES LTD is a start-up company with modest financial resources but currently sufficient liquidity to meet short-term obligations. The company’s creditworthiness is limited by minimal equity and unclear tax liabilities, warranting conditional approval with ongoing monitoring. Careful observation of tax payments, profitability, and capital structure is essential to mitigate credit risk going forward.

MW CABLING SERVICES LTD - Analysis Report

Company Number: 14850173

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MW CABLING SERVICES LTD is a newly incorporated private limited company (May 2023) operating in electrical installation (SIC 43210). The financial data reflects only one year of trading with small absolute figures and a very limited equity base (£75 net assets). The company shows positive net current assets and cash of £12,965 against current liabilities of £3,961, which indicates short-term liquidity is adequate. However, the presence of a corporation tax creditor (£8,929) classified as long-term liability is unusual and should be clarified as it impacts the company’s financial obligations. Given the limited operating history and small capital, credit approval should be conditional on further financial performance monitoring and confirmation of tax liabilities.

2. Financial Strength:
   The balance sheet shows total net assets of only £75, with a call-up share capital of £10 and retained earnings of £65, suggesting minimal capitalization and limited buffer against losses. Fixed assets are not reported, implying reliance on current assets and working capital. The company has net current assets of £9,004, supported by cash holdings. However, the classification of corporation tax as a long-term creditor (£8,929) creates uncertainty regarding future cash outflows and overall solvency. The low equity base and minimal reserves indicate financial fragility, common in early-stage companies.

3. Cash Flow Assessment:
   The company’s cash position (£12,965) comfortably exceeds short-term creditors (£3,961), which supports immediate liquidity and ability to meet current obligations. The positive net current asset position indicates working capital is sufficient for day-to-day operations. However, cash flow sustainability beyond the initial year depends on ongoing revenue generation and management of tax liabilities. No information on operating cash flow or profitability is available due to the exemption from full accounts filing, limiting assessment of cash flow trends.

4. Monitoring Points:

• Clarify the nature and timing of the corporation tax liability (£8,929) reported as a long-term creditor to assess future payment obligations and cash flow impact.
• Monitor subsequent filing of full financial statements and confirmation statements to track revenue growth, profitability, and asset base development.
• Review management’s ability to maintain liquidity and control costs as trading scales.
• Watch for changes in share capital or equity injections that improve the financial cushion.
• Track director conduct and company status updates to ensure ongoing compliance and operational viability.