Company Number: 14721103

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PART EXCHANGE WAREHOUSE LTD is a newly incorporated micro-entity operating in the used car sales sector. The company shows a very modest net asset base (£116) and minimal working capital, reflecting the early stage of its business lifecycle. While there is no negative financial history or overdue filings, the limited scale and negligible current financial strength warrant cautious approval. Lending or credit facilities should be limited initially and contingent on demonstrated trading performance and cash flow improvements going forward.

2. Financial Strength:
   The balance sheet as of 31 March 2024 shows total current assets of £1,873 against current liabilities of £1,757, leaving a net current asset (working capital) position of only £116. Net assets and shareholders’ funds also stand at £116, indicating an extremely thin equity buffer. There are no fixed assets recorded, and no profit and loss account was filed, consistent with a micro-entity exemption. Overall, financial strength is minimal with no reserves or retained earnings to absorb shocks.

3. Cash Flow Assessment:
   The working capital position is positive but marginal. The company’s liquidity is extremely tight given the almost equal current liabilities and assets. The business operates with one employee, suggesting low overheads, but cash flow capacity to service debt or absorb financial stress is very limited. No historical profitability or cash flow data is available to assess operational cash generation ability at this early stage.

4. Monitoring Points:

• Watch for the first full-year trading results to assess revenue growth and profitability.
• Monitor cash flow statements and working capital trends in subsequent filings.
• Track any increases in equity or reserves to improve financial resilience.
• Review timely submission of accounts and confirmation statements to evaluate management discipline.
• Observe any material changes in liabilities or asset base, especially inventory and receivables.