Company Number: 14676384

Analysis Date: 2025-07-20 15:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MYK SKIP HIRE LTD is a newly incorporated private limited company operating in the non-hazardous waste collection sector. The financial data covers just its first accounting period, limiting trend analysis. The company reports modest net assets (£5,812) and positive working capital (£2,608), which suggests initial financial stability. However, the significant amount owed to related parties (£11,631) classified as long-term creditors indicates reliance on director or shareholder funding rather than external financing. Given the absence of employees and limited turnover data, the company’s operational scale is minimal. Approval is recommended with conditions: monitor subsequent financial filings for revenue generation, profitability, and reduced reliance on related-party debt before extending larger credit facilities.

2. Financial Strength:
   The balance sheet shows fixed assets of £14,835 primarily in tangible assets such as plant and machinery, depreciated by £3,465 during the year. Current assets total £2,642, mainly cash (£1,882) and debtors (£760, amounts due from group undertakings). Current liabilities are very low at £34, resulting in net current assets of £2,608, indicating sufficient short-term liquidity. However, there is a notable creditor balance due after one year of £11,631 owed mostly to related parties, which is a potential risk factor since the company depends on shareholder or director loans rather than external financing. Shareholders’ funds equal net assets at £5,812, reflecting a modest equity base.

3. Cash Flow Assessment:
   Cash at bank of £1,882 is modest but adequate for a startup in its first year with minimal payables (£34). The net current assets position is positive, supporting short-term liquidity. The absence of employees and low trade creditors reduces cash outflow pressures. However, the company’s cash flow sustainability depends on incoming revenues and the ability to reduce or refinance the related party long-term liabilities. Continued monitoring of cash generation from operations is essential as no historical profit and loss data is disclosed.

4. Monitoring Points:

• Revenue and profitability development to assess operational viability as the company grows.
• Trends in working capital, especially debtor collections and creditor payments.
• Reduction or restructuring of related-party long-term loans to improve financial independence.
• Filing of next annual accounts and confirmation statements on time to maintain compliance.
• Director’s ongoing commitment and any changes in ownership or control that might affect creditworthiness.