Company Number: 13273189

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TRUST LOGISTIC LTD demonstrates a stable asset base with fixed assets of £244,692 and positive net assets of £73,107 at 31 March 2024. However, the company’s net current liabilities position remains significant (£171,586), indicating potential short-term liquidity pressure. Given the micro-entity scale and limited employee base (1 person), the company’s ability to service debt depends on managing working capital tightly and maintaining steady cash flow. The directors are relatively young but appear engaged, with no adverse records. Conditional approval is recommended, subject to monitoring liquidity and ensuring timely payment performance.

2. Financial Strength:
   The company’s balance sheet shows consistent fixed assets (£244,692) over the last three years, suggesting no recent disposals or major investments. Shareholders’ funds have increased modestly from £63,773 in 2023 to £73,107 in 2024, indicating marginal retained earnings growth. Total assets less current liabilities improved from £67,584 to £73,107, reflecting slight strengthening of net asset position. However, current liabilities remain high relative to current assets, creating a working capital deficit that could impair short-term financial flexibility.

3. Cash Flow Assessment:
   Current assets increased slightly to £9,435 in 2024, but still pale compared to current liabilities of £181,021, resulting in a negative net working capital of £171,586. This points to potential liquidity constraints in meeting short-term obligations without additional financing or asset sales. The company holds minimal cash balances (£5,471 in 2023; exact 2024 cash not separately disclosed but included in current assets), and with only one employee, cash generation capacity is limited. Close attention to receivables collection, creditor terms, and cash flow forecasting is essential.

4. Monitoring Points:

• Liquidity ratios and net current asset position at next filings to ensure no further deterioration.
• Timeliness of upcoming accounts and confirmation statement filings to confirm good governance.
• Directors’ ability to manage working capital and any reliance on related party funding or external credit lines.
• Revenue and profitability trends (not disclosed here) to assess operational sustainability.
• Potential impact of macroeconomic factors on freight and leasing demand in their SIC sectors (77120 and 49410).