T MULLIN ASSOCIATES LIMITED

Executive Summary

T Mullin Associates Limited is a newly established micro-entity with a negative net asset position and reliance on unsecured director loans, indicating weak financial strength and liquidity constraints. The current financial profile does not support the approval of credit facilities without significant enhancement in cash flow or capitalization. Close monitoring of liquidity and director funding is essential for future credit assessments.

T MULLIN ASSOCIATES LIMITED - Analysis Report

Company Number: 15221682

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: DECLINE
   T Mullin Associates Limited is a recently incorporated micro-entity with a negative net asset position of £8,649 and net current liabilities of the same amount at its first accounting reference date. The company exhibits weak financial strength, relying heavily on director advances (£50,066 advanced, £6,087 outstanding at year-end) which are unsecured, interest-free, and repayable on demand. This exposes the business to liquidity risk and indicates dependence on the director’s personal funds rather than operational cash flow. There is no evidence of profitability or positive working capital generation yet, which is typical for a start-up but increases credit risk. Given the negative equity and current liabilities exceeding current assets, the company lacks sufficient financial resilience to service debt or withstand economic stress at this stage.

2. Financial Strength:
   The balance sheet shows net liabilities of £8,649 with current liabilities (£14,736) more than double current assets (£6,087). Fixed assets are not reported, indicating no capital investment or tangible asset backing. Shareholders’ funds are negative, reflecting accumulated losses or initial losses typical in the start-up phase. The reliance on director loans to fund operations is material and unsecured, which weakens the company’s capital structure. No retained earnings or reserves exist, and the small scale of operations (2 employees) limits diversification.

3. Cash Flow Assessment:
   With net current liabilities and a negative working capital position, the company shows constrained liquidity. The director advances temporarily support cash flows, but repayment of £43,979 during the year suggests some cash inflow. However, no formal debt or credit lines are evident, and the absence of interest income or operating cash flow data limits assessment of cash generation ability. The company’s ability to meet short-term obligations without further director support remains uncertain.

4. Monitoring Points:

• Monthly cash flow forecasts and working capital changes to monitor liquidity trends.
• Director loan balances and any changes to terms or additional funding required.
• Timely filing of next accounts to assess any improvements in financial position.
• Any new credit facilities or trade credit arrangements established.
• Progress in generating operating profits and positive cash flows beyond start-up funding.