TRUST MOTORS LIMITED

Executive Summary

TRUST MOTORS LIMITED is a recently formed micro-entity with a weak financial base characterized by negative working capital and minimal assets. The company’s ability to service credit facilities is unproven, and liquidity constraints present a high risk. Credit approval is not recommended at this stage without significant improvement in financial position and cash flow.

TRUST MOTORS LIMITED - Analysis Report

Company Number: 14402260

Analysis Date: 2025-07-20 11:05 UTC

1. Credit Opinion: DECLINE. TRUST MOTORS LIMITED is a newly incorporated micro-entity with very limited financial history and minimal asset base. The negative net current assets (£8,233) indicate a working capital deficiency, suggesting potential liquidity constraints. The company operates in the used car sales sector, which can be competitive and capital intensive, and it currently shows no substantive cash or receivables to cover current liabilities. The directors have limited tenure, and there is no evidence of profitability or cash flow generation to support debt servicing. Given these factors, extending credit at this stage carries a high risk of default.

2. Financial Strength: The company’s balance sheet as at 31 October 2023 shows fixed assets of £15,990 but current assets of only £896 against current liabilities of £9,129. This results in negative net current assets (working capital) of -£8,233, indicating that short-term liabilities exceed liquid assets by a significant margin. Total net assets stand at £7,757, reflecting the initial capital introduced but no retained earnings or profit reserves. Overall, the financial position is weak, with insufficient liquidity and limited capital buffer.

3. Cash Flow Assessment: The reported current asset figure of £896 suggests minimal cash or equivalents available. With current liabilities of £9,129 due within one year, the company lacks the working capital necessary to meet short-term obligations without additional financing or capital injection. The micro-entity accounts do not provide a cash flow statement, but the negative working capital and small asset base imply negative operating cash flow or reliance on external funding to sustain operations.

4. Monitoring Points:

• Quarterly updates on cash balances and creditor payment status to assess liquidity trends.
• Confirmation of any new contracts or revenue streams to measure business traction.
• Director changes and control shifts, especially as prior controlling shareholders resigned in 2024.
• Timely filing of next accounts and confirmation statements to ensure regulatory compliance.
• Any capital injections or loan facilities extended to improve working capital should be tracked.