THE LOCATION GUYS LTD

Executive Summary

The Location Guys Ltd shows adequate liquidity and a positive equity base suitable for credit approval with conditions. Declining net assets and reduced working capital warrant close monitoring of cash flow and debtor management. Overall, the company appears financially stable but should be watched for potential tightening in short-term finances.

THE LOCATION GUYS LTD - Analysis Report

Company Number: 13110162

Analysis Date: 2025-07-20 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Location Guys Ltd demonstrates adequate net current assets and positive shareholders’ funds, indicating a reasonable short-term ability to meet liabilities. However, the company’s net assets have declined from £40,438 in 2024 to £33,148 in 2025, suggesting some erosion of equity. The cash position is strong relative to current liabilities, but the reduction in debtors and net current assets warrants attention. Given the company is relatively young (incorporated 2021) and operates in residents property management (SIC 98000), which can be cyclical, we recommend credit approval subject to ongoing monitoring of liquidity and debtor collection.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£1,223), reflecting low capital intensity. Current assets at £167,777 and current liabilities at £135,546 yield a net current asset position of £32,231, which provides a working capital buffer. Shareholders’ funds stand at £33,148, down from £40,438 the previous year, indicating a reduction in retained earnings or possibly increased provisions. The company maintains positive equity, but the downward trend in net assets should be watched. The relatively low share capital (£100) is typical for small private companies but limits capital base strength.

3. Cash Flow Assessment:
   Cash balances of £143,855 exceed current liabilities of £135,546, indicating good liquidity to cover short-term obligations. Debtors decreased to £23,922 from £34,523, which could reflect improved collections or reduced sales; the impact on cash inflows should be clarified. The company shows stable cash management with sufficient working capital, but the decline in net current assets from £40,044 to £32,231 signals tighter short-term funds. No audit has been performed, so further due diligence on cash flow trends is recommended.

4. Monitoring Points:

• Watch net asset and retained earnings trends for further erosion.
• Monitor debtor days and collection efficiency to maintain cash flow.
• Track current liabilities, especially taxation and social security obligations, which are significant (£72,774).
• Observe any changes in operating environment for residents property management that might impact revenue stability.
• Review any future filings for consistency and to detect early signs of financial distress.