ULTIMATE GLOSS VEHICLE DETAILING LTD

Executive Summary

ULTIMATE GLOSS VEHICLE DETAILING LTD is a young, small private company showing moderate financial strength with positive net assets and working capital. However, increased liabilities and elevated stock levels pose liquidity risks that require close monitoring. Credit extension is recommended with conditions focusing on cash flow management and regular financial review.

ULTIMATE GLOSS VEHICLE DETAILING LTD - Analysis Report

Company Number: 13548075

Analysis Date: 2025-07-29 17:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ULTIMATE GLOSS VEHICLE DETAILING LTD demonstrates a modestly positive net asset base and working capital position, indicating it can meet short-term obligations. However, the company shows a decline in net assets from £5,059 in 2023 to £4,094 in 2024 and an increase in current liabilities, particularly tax and other creditors, which more than doubled year-on-year. This suggests some pressure on liquidity and a need for improved cash flow management. Given its young age (incorporated 2021) and single director ownership, credit should be extended with caution, possibly with limits on exposure and periodic financial reviews.

2. Financial Strength:
   The company’s net assets decreased by approximately 19% over the last year, primarily due to increased liabilities and reduced retained earnings. Fixed tangible assets have also been depreciated, reducing net book value from £3,636 to £2,814. Despite this, shareholders’ funds remain positive at £4,094. The balance sheet reflects a small business profile with minimal gearing (no long-term debt shown). Overall, the financial strength is moderate but stable for its size and industry.

3. Cash Flow Assessment:
   Current assets rose from £5,081 to £8,452, mainly due to a large increase in stock from £1,857 to £6,586, while cash decreased from £2,945 to £1,866. This elevated stock level may tie up liquidity and could present a risk if turnover slows. Current liabilities doubled from £3,658 to £7,172, driven by tax and other creditors, which could indicate payment delays or accruals. Net current assets remain positive but have slightly decreased. Working capital is adequate but watchful management of payables and inventory is critical to maintain liquidity.

4. Monitoring Points:

• Liquidity ratios and cash conversion cycles, especially monitoring stock turnover and debtor collections.
• Trends in current liabilities, particularly tax and other creditors, to ensure no build-up of overdue payables.
• Profitability and retained earnings to assess if the downward net asset trend stabilizes or reverses.
• Director’s management performance and any changes in ownership or control that may impact governance.
• Compliance with filing deadlines and any indications of financial distress.