NEXT LEVEL MECHANIC LIMITED

Executive Summary

NEXT LEVEL MECHANIC LIMITED is an early-stage micro-entity with minimal financial resources and a very thin equity base, posing significant credit risk. The company's liquidity position is precarious with no meaningful working capital buffer, and insufficient financial history to demonstrate repayment capacity. Credit extension is not recommended without substantial improvement in financial strength and operating cash flows.

NEXT LEVEL MECHANIC LIMITED - Analysis Report

Company Number: 14227028

Analysis Date: 2025-07-20 12:33 UTC

1. Credit Opinion: DECLINE
   NEXT LEVEL MECHANIC LIMITED is a very young micro-entity with minimal net assets (£100) and marginal working capital that exactly offsets current liabilities. The company’s balance sheet shows no meaningful financial buffer or retained earnings. Given the limited scale of operations (one employee) and very modest fixed assets, there is a high risk that the company lacks sufficient financial strength and cash flow to service debt obligations reliably. Lack of profitability data and absence of an audit further reduce transparency. Without stronger financial history or collateral, extending credit would be imprudent.

2. Financial Strength:
   The company’s net assets and shareholders’ funds stand at £100, reflecting a very thin equity base. Fixed assets total just £5,502, while current liabilities are £5,402, leaving net current assets negative at the same level, indicating no working capital cushion. The balance sheet position has remained stable but minimal over the past two years, showing no growth or accumulation of reserves. This fragile financial structure limits resilience to adverse economic conditions or unexpected expenses.

3. Cash Flow Assessment:
   The micro-entity classification and reported figures suggest very limited cash flow generation capacity. Net current assets are effectively zero, implying tight liquidity with current liabilities matched by current assets. The single employee operation and very low asset base point to minimal operating scale and cash inflows, raising concerns about the ability to meet short-term obligations or absorb shocks. No information on profit or loss, trade payables, or receivables is available to better assess cash flow quality.

4. Monitoring Points:

• Monitor any improvements in net assets and working capital to build financial buffers.
• Track profitability trends once available to assess earnings sustainability.
• Review any changes in liabilities, especially short-term debt levels.
• Observe director transactions or capital injections from the sole shareholder to support liquidity.
• Watch for timely submission of future accounts and confirmation statements to ensure ongoing compliance.