NM DELIVERY SERVICE LTD

Executive Summary

NM DELIVERY SERVICE LTD is a small, single-employee business with limited financial resources and persistent negative working capital, showing modest but stable net assets. While the company’s balance sheet reflects some operational stability, liquidity constraints and a narrow asset base suggest caution. Credit can be extended on a conditional basis with tight limits, collateral, and active monitoring of cash flow and creditor exposure.

NM DELIVERY SERVICE LTD - Analysis Report

Company Number: 13566021

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NM DELIVERY SERVICE LTD shows stable net asset levels with modest equity of approximately £8.5k. However, the company consistently reports negative working capital, with current liabilities exceeding current assets by £2.2k in 2024, though this is an improvement from a £4.6k deficit in 2023. The business operates in taxi and food services, sectors typically sensitive to economic cycles. The limited scale (single employee, minimal fixed assets) and negative net current assets indicate potential liquidity constraints. Approval is possible if credit limits are modest, collateral or personal guarantees are provided, and regular monitoring of cash flow and creditor levels is maintained.

2. Financial Strength:
   The company’s balance sheet shows total net assets stable at around £8.5k, supported by tangible fixed assets (motor vehicles) valued at £10.7k after depreciation. Share capital is minimal (£100), with retained earnings forming the bulk of shareholders’ funds. The decline in fixed assets from £13k to £10.7k reflects depreciation without asset replacement. The current asset base is very limited (£2.5k cash only), with no reported receivables or stock. The company’s small scale and negative working capital raise concerns about short-term financial resilience.

3. Cash Flow Assessment:
   Cash at bank is low but has increased slightly to £2.5k, which is insufficient to cover current liabilities of £4.7k. The negative net current assets indicate the company relies on external financing or delayed payments to meet short-term obligations. The absence of other current assets such as receivables or inventory suggests limited operational liquidity buffers. Given the small size and single employee, cash flow volatility could be significant. Close attention should be paid to payment terms with suppliers and clients to avoid cash shortfalls.

4. Monitoring Points:

• Working capital trends: Monitor if net current liabilities continue to reduce or worsen.
• Cash flow statements (if available): Watch for consistent positive operating cash flows.
• Debtor and creditor aging: Ensure timely collection and manageable payables.
• Business activity and revenue growth: Confirm the company’s ability to expand or maintain turnover in competitive markets.
• Director conduct and any changes in management or ownership that could impact financial discipline.