TECH AND TYRES MOBILE VEHICLE SERVICES LTD

Executive Summary

Tech And Tyres Mobile Vehicle Services Ltd is a startup micro-entity with limited trading history and a fragile liquidity position evidenced by negative working capital and minimal net assets. The company currently relies on director loans to support operations, posing a moderate credit risk. Conditional credit approval is recommended with strict monitoring of liquidity improvement, trading performance, and financial compliance.

TECH AND TYRES MOBILE VEHICLE SERVICES LTD - Analysis Report

Company Number: 14960137

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Tech And Tyres Mobile Vehicle Services Ltd is a newly incorporated micro-entity in the vehicle maintenance and repair sector with limited trading history, having filed its first set of accounts for the period ending June 30, 2024. The company currently exhibits a weak liquidity position with net current liabilities of £13,949 and minimal net assets of £389. The directors have provided unsecured, interest-free loans to support operations, indicating reliance on shareholder funding. Credit can be considered on a conditional basis, subject to improved liquidity, consistent trading performance, and timely servicing of any debt facilities. Close monitoring is recommended due to the company’s early stage and working capital constraints.

2. Financial Strength: The balance sheet shows minimal fixed assets (£14,588) and current assets of £39,821 against current liabilities of £53,770, resulting in negative net working capital. Net assets are very low at £389, reflecting the early startup phase and limited retained earnings. The company’s capital structure is primarily equity funded by the two directors who hold majority control. This thin equity base and negative working capital position point to limited financial strength and vulnerability to cash flow shocks.

3. Cash Flow Assessment: Negative net current assets indicate potential liquidity risk. The company’s cash flow appears supported by director advances (£1,325 outstanding loan to a director), which are unsecured and repayable on demand. There is no indication of external borrowing yet. Working capital management is critical; the company must generate positive operating cash flows or secure additional funding to meet short-term obligations. Absence of audit and limited financial history restricts assessment of cash flow trends.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios in subsequent periods.
• Ability to convert director loans and other receivables into cash.
• Revenue growth and profitability trends to support self-sustaining operations.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Stability and experience of management team in executing business plan.
• Any external financing secured and terms thereof.