Company Number: 12537688

Analysis Date: 2025-07-19 12:34 UTC

1. Credit Opinion: APPROVE
   Westbridge Motor Services Ltd demonstrates a solid financial position for a micro-entity engaged in motor vehicle maintenance and repair. The company has shown strong growth in net assets and net current assets over the last fiscal year, indicating improved liquidity and financial stability. There is no overdue filing, and the director appears stable and engaged in the business. The unsecured director loan of £15,599 is manageable and repayable on demand, not currently impairing liquidity.

2. Financial Strength:
   The balance sheet reveals steady growth in equity from £18,004 in 2023 to £54,002 in 2024, driven by an increase in net current assets from £8,788 to £44,943. Fixed assets remain modest and stable around £9,000, appropriate for the business type. Current liabilities have slightly decreased, improving working capital. Shareholders’ funds have tripled, reflecting retained earnings or capital injections, which strengthen the company’s net asset base. Overall, the company is financially sound with a conservative asset base and no signs of over-leveraging.

3. Cash Flow Assessment:
   Current assets at £79,485 against current liabilities of £39,397 provide a current ratio of approximately 2.0, indicating good short-term liquidity. The substantial increase in prepayments and accrued income (from £224 to £4,855) suggests better management of receivables or upfront payments. The company holds a positive working capital buffer, which supports ongoing operational expenses and short-term obligations. The director loan is unsecured and repayable on demand, but given the company’s liquidity, it poses limited risk. Cash flow appears stable, but detailed cash flow statements would be needed for deeper analysis.

4. Monitoring Points:

• Continued profitability and retention of earnings to sustain net asset growth.
• Monitoring director loans to ensure they do not become a liquidity strain or lead to conflicts of interest.
• Maintain timely filings to avoid penalties and reputational risk.
• Watch for any changes in current liabilities or debtor collections that could impact liquidity.
• Monitor employee costs and growth, ensuring operational scalability aligns with financial health.