THE NAVIGATION (STOCKPORT) LIMITED

Executive Summary

THE NAVIGATION (STOCKPORT) LIMITED demonstrates a sound initial financial position for a start-up micro-entity in the hospitality sector, with positive net assets and liquidity. Given its early stage and modest scale, credit approval is recommended on a conditional basis, emphasizing the need for ongoing monitoring of cash flow and operational performance. Prudence is advised due to limited trading history and tight working capital.

THE NAVIGATION (STOCKPORT) LIMITED - Analysis Report

Company Number: 15020558

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THE NAVIGATION (STOCKPORT) LIMITED is a newly incorporated micro-entity operating in the public houses and bars sector. The company shows a positive net asset position of £18,527 with net current assets of £7,591, indicating modest initial financial stability. However, limited financial history and small scale operations (one employee on average) suggest a cautious approach. Approval is conditional on continued positive cash flow and operational performance, with close monitoring due to the inherent risks of start-up hospitality businesses.

2. Financial Strength:
   The balance sheet reveals fixed assets of £10,936 and current assets of £44,264 against current liabilities of £36,673, resulting in net current assets of £7,591. Total net assets and shareholders’ funds stand at £18,527, reflecting the initial capital invested. No long-term liabilities or provisions are reported, which simplifies the liability profile but also indicates limited leverage. The company’s financial base is currently thin but not weak given its new status.

3. Cash Flow Assessment:
   The company maintains positive net current assets, suggesting sufficient short-term liquidity to cover immediate obligations. However, with a current liability level close to current asset value, working capital is tight. Given the hospitality sector’s earnings volatility, ongoing cash flow monitoring is essential. The absence of prepayments, accruals, or deferred income reduces complexity but also means that cash inflows and outflows should be scrutinized regularly.

4. Monitoring Points:

• Revenue and profitability trends as the company matures beyond its start-up phase.
• Maintenance of positive working capital and liquidity ratios to avoid cash flow distress.
• Any increase in liabilities or leverage that could affect solvency.
• Directors’ financial management and operational execution in the competitive hospitality market.
• Compliance with filing deadlines and regulatory obligations to avoid penalties or reputational risks.