TLX AUTOCARE LTD

Executive Summary

TLX AUTOCARE LTD is a start-up micro-entity with a modest but positive net asset position and positive working capital as of its first year end. The company’s limited financial history and recent change in management require conditional credit approval with close monitoring of updated financials and cash flow to confirm ongoing repayment capacity. Continued oversight of operational growth and liquidity metrics is recommended to mitigate early-stage risks.

TLX AUTOCARE LTD - Analysis Report

Company Number: 13792729

Analysis Date: 2025-07-20 14:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

TLX AUTOCARE LTD is a recently incorporated micro-entity operating in motor vehicle maintenance and repair. The company demonstrates a modest but positive net asset position at its first year end. However, the limited financial history, absence of employees, and director change in late 2024 introduce some uncertainty. Approval is recommended subject to receiving updated interim financials and monitoring cash flow closely for signs of operational scale and stability.

2. Financial Strength:

The balance sheet as of 31 December 2022 shows fixed assets of £2,740 and current assets of £3,720 against current liabilities of £3,320, yielding net current assets of £400 and net assets of £3,140. This reflects a modest equity base with working capital slightly positive. The company’s micro size and limited operational history mean asset base and reserves are minimal. There is no indication of long-term borrowings or contingent liabilities.

3. Cash Flow Assessment:

Current assets relative to current liabilities indicate a narrow but positive working capital position, suggesting the company can meet short-term obligations as of the last reporting date. However, absence of employees and minimal asset holdings imply limited operating scale and cash generation. The recent change in director and principal shareholder may impact operational continuity. Cash flow monitoring is essential given the early stage and limited financial data.

4. Monitoring Points:

• Updated financial statements for 2023 and interim management accounts to confirm revenue and profit trends.
• Liquidity ratios and cash flow statements to ensure ongoing ability to service debt.
• Stability of management and shareholder structure post director change.
• Evidence of customer base growth and operational scale to support sustainable cash flows.
• Any new debt or contingent liabilities that could affect credit risk.