WHMOTORSERVICE LTD

Executive Summary

WHMOTORSERVICE LTD is a newly formed micro business with minimal financial resources and limited trading history. Current financials show very tight liquidity and negligible net assets, warranting cautious credit exposure. Conditional approval is recommended with strict monitoring of cash flow, debtor management, and compliance filings to mitigate risk.

WHMOTORSERVICE LTD - Analysis Report

Company Number: 14812895

Analysis Date: 2025-07-29 14:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WHMOTORSERVICE LTD is a very recently incorporated private limited company (April 2023) operating in motor vehicle maintenance and used car sales. The latest unaudited abridged accounts to 30 April 2024 show minimal net assets (£37) and a very small scale of operations with only one employee. Current liabilities nearly match current assets, resulting in a marginal net working capital position. The business is showing early signs of growth with increased debtors and cash compared to prior year figures, but absolute financial scale remains very limited. Given these factors, credit exposure should be limited and conditional on ongoing monitoring of financial performance and liquidity. The company’s very short trading history and modest capital base elevate risk, so credit terms should be conservative.

2. Financial Strength:
   The balance sheet shows extremely limited financial resources. Total net assets stand at £37, consisting largely of current assets (£1,457) offset by nearly equivalent current liabilities (£1,420). Fixed assets are not reported, indicating no significant long-term investments or collateral. Shareholders’ funds have increased slightly from £12 at incorporation, reflecting modest retained earnings of £25. The company is classified as a micro entity with only one employee and minimal capital. This indicates very low financial resilience to shocks or unexpected expenses. The director’s statement supports going concern but this is based on management expectations rather than strong financial buffers.

3. Cash Flow Assessment:
   Cash at bank is £445, which is positive but low relative to current liabilities of £1,420, suggesting working capital constraints. Debtors have increased substantially to £1,012, indicating sales on credit but also potential collection risk. Net current assets of only £37 show the company’s liquidity position is very tight. Without additional financing or improved cash generation, the company may struggle to meet short-term obligations promptly. The absence of detailed profit and loss data limits ability to assess operating cash flow quality but the modest scale and current asset composition imply limited cash flow flexibility.

4. Monitoring Points:

• Track monthly cash flow and debtor collection closely to avoid liquidity shortfalls.
• Monitor growth in current liabilities relative to current assets to assess working capital management.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Review any business expansion plans or capital injections from the sole shareholder to support financial stability.
• Keep an eye on director’s commentary and any changes in operational scale or employee numbers for signs of growth or distress.