SEVO CAR WASH LTD

Executive Summary

SEVO CAR WASH LTD is a micro-entity at an early stage with limited financial depth and modest net assets. The company demonstrates a positive but fragile financial position with low liquidity and a significant long-term creditor balance. Conditional credit approval is recommended, subject to close monitoring of cash flow, profitability, and compliance with filing requirements to mitigate risk associated with its startup status.

SEVO CAR WASH LTD - Analysis Report

Company Number: 15069450

Analysis Date: 2025-07-29 16:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SEVO CAR WASH LTD is a newly incorporated micro-entity with limited financial history, making credit risk assessment inherently cautious. The company shows positive net assets but carries a significant long-term creditor balance (£15,000) against relatively minimal fixed assets (£15,000) and current assets (£968). Given its micro status, lack of profitability data, and the early stage of operations, credit approval should be conditional on monitoring future trading performance and timely delivery of updated financials. The single director and sole shareholder structure concentrates control, which can be positive for responsiveness but warrants oversight on governance and financial discipline.

2. Financial Strength:
   The balance sheet as of 31 August 2024 shows total net assets of £793, indicating a very modest equity base. Fixed assets of £15,000 correspond to the long-term creditor liability of £15,000, suggesting this liability is likely related to asset financing or shareholder loans. Current assets (£968) exceed current liabilities (£175), resulting in a small positive working capital (£793). The company employs three staff, consistent with micro-entity scale. While the asset base exists, overall financial strength is fragile due to the minimal equity and limited liquidity buffer.

3. Cash Flow Assessment:
   Current assets are low, and with current liabilities at £175, the company shows a positive net current asset position, but the absolute level of liquid resources is minimal. The presence of long-term creditors indicates future repayment obligations that will require cash generation from operations. Absence of profit and loss data limits insight into operational cash flow generation. Close attention should be paid to cash flow forecasts and creditor payment terms to ensure ongoing liquidity and ability to meet short and long-term obligations.

4. Monitoring Points:

• Timely submission of next accounts and confirmation statements to maintain compliance and transparency
• Cash flow performance and working capital trends with emphasis on liquidity management
• Profitability development and ability to service long-term creditors
• Director’s management of operational risks and any material changes in ownership or control
• Evidence of business growth or diversification in cleaning/car wash services sector