NG LOGISTIC SERVICE LTD

Executive Summary

NG LOGISTIC SERVICE LTD demonstrates ongoing financial weakness with negative equity and working capital deficits, reflecting limited capacity to service debt. The company’s financial trajectory shows no clear improvement, posing heightened credit risk. Without clear evidence of strengthened liquidity or capital injection, credit approval is not advised at this stage.

NG LOGISTIC SERVICE LTD - Analysis Report

Company Number: 14210617

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: DECLINE. NG LOGISTIC SERVICE LTD, a micro-entity operating in removal services since 2022, shows persistent negative net assets and shareholders’ funds, indicating an ongoing equity deficiency. The company’s inability to generate positive working capital or improve its financial position over two years raises concerns about its capacity to meet debt obligations reliably. The negative net current assets and reliance on long-term creditors suggest liquidity constraints, increasing credit risk.

2. Financial Strength: The balance sheet reveals fixed assets declining slightly from £42.4k to £34.3k, while current assets fell significantly from £9.3k to £4.3k. Current liabilities remain high relative to current assets, resulting in a negative net working capital of £421 in 2024 (an improvement from -£1,765 in 2023 but still negative). Total net liabilities increased from -£1,765 (2023) to -£4,128 (2024), showing deteriorating equity. This weak financial structure is typical of a start-up micro entity but reinforces vulnerability to financial stress.

3. Cash Flow Assessment: Current liabilities exceed current assets, indicating potential short-term liquidity issues. The company’s working capital deficit suggests it may struggle to cover short-term obligations without additional funding. With only one employee and no audit required, operational scale is minimal, limiting cash inflows. No off-balance-sheet liabilities were disclosed, but absence of positive cash reserves heightens risk of insolvency if revenue or financing does not improve.

4. Monitoring Points:

• Improvement or further deterioration in net current assets and net equity.
• Timeliness of future filings and confirmation statements.
• Cash generation capability and any new financing arrangements.
• Changes in creditor structure or creditor pressure.
• Operational scaling or cost management efforts impacting profitability.