TRACKMASTER ENGINEERING LTD

Executive Summary

Trackmaster Engineering Ltd is a very young micro-entity with limited financial data and a modest balance sheet. While current financial resources are minimal and working capital is negative, the company is compliant with regulatory filings and under single director control, suggesting operational oversight. Conditional credit approval is recommended, contingent on monitoring future financial performance and liquidity improvements.

TRACKMASTER ENGINEERING LTD - Analysis Report

Company Number: 15222668

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Trackmaster Engineering Ltd is a newly incorporated micro-entity with limited financial history and minimal asset base. The net assets and shareholders’ funds stand at £460, reflecting initial capital investment rather than operational earnings. The company currently shows negative net current assets (£-121), indicating a working capital deficit. However, the absence of overdue filings and a single director with full control suggests compliance and straightforward governance. Credit approval is possible but should be conditional on obtaining further financial data as the business matures, including profit and loss information and cash flow statements, to assess ongoing repayment capacity.

2. Financial Strength:
   The balance sheet reveals a very small fixed asset base (£717) and current liabilities of £121, resulting in net current liabilities. The company holds no provisions for liabilities beyond £136, which is modest. Overall net assets of £460 reflect a very early stage of capitalization. The micro-entity status limits disclosure, but there is no indication of significant debt or leverage. The financial position is fragile due to limited resources, and the company’s ability to withstand financial stress is minimal at this stage.

3. Cash Flow Assessment:
   There is no direct cash flow statement provided, but the negative working capital and minimal assets imply tight liquidity. With only one employee and minimal recorded liabilities, operating cash demands may currently be low. However, the company will need to generate positive operating cash flow and build working capital to support growth and meet obligations. Monitoring cash flow generation and managing payables will be critical in the early years.

4. Monitoring Points:

• Profit and loss performance once available, to assess operational viability.
• Development of positive net current assets to improve liquidity.
• Timely submission of future accounts and confirmation statements.
• Changes in director or ownership structure that might impact governance.
• Any increase in liabilities or capital expenditure that could strain finances.