AKA MARS RAIL LIMITED

Executive Summary

AKA Mars Rail Limited displays weak financial health characterized by persistent negative working capital and minimal net assets, raising concerns about its ability to service debt. The company’s liquidity position is fragile, with current liabilities significantly exceeding current assets, limiting financial resilience. Credit approval is not recommended without additional security or strong mitigating factors.

AKA MARS RAIL LIMITED - Analysis Report

Company Number: 12489713

Analysis Date: 2025-07-20 17:55 UTC

1. Credit Opinion: DECLINE
   AKA Mars Rail Limited exhibits persistent net current liabilities and very low net asset values over the last four years, indicating weak short-term financial health and limited cushion to absorb shocks. The company’s working capital is consistently negative (£-29,446 in 2024), raising concerns about liquidity and the ability to meet current obligations without external support. The small scale (Micro category) and minimal share capital (£1) further limit financial resilience. Despite being current on filings and active, the lack of growth in net assets (declining from £766 in 2023 to £114 in 2024) combined with negative working capital suggests challenges in operational cash flow management. This profile does not support approval for unsecured credit facilities. Any credit extension should be conditional on additional security or guarantees and close monitoring.

2. Financial Strength:
   The balance sheet reveals fixed assets of £30,325 in 2024 down from £40,331 in 2023, possibly indicating disposals or depreciation outpacing reinvestment. Current assets increased slightly to £46,207 but are insufficient to cover current liabilities of £75,653, resulting in net current liabilities of £29,446. Net assets are marginal at £114, down from £766 the prior year, reflecting accumulated losses or write-downs. Shareholders’ funds mirror net assets, signaling minimal equity buffer. The company’s capital structure is fragile, with almost no retained earnings or reserves to support growth or absorb losses.

3. Cash Flow Assessment:
   Negative net current assets indicate potential liquidity stress, as current liabilities exceed current assets by a significant margin. The company may rely heavily on creditor financing or short-term borrowings to fund operations. The limited fixed asset base and micro-entity status suggest constrained cash generation capability. Without detailed cash flow statements, the trend in working capital deficits and low equity implies challenges in sustaining positive operational cash flow, increasing risk of payment delays or dependence on external funding.

4. Monitoring Points:

• Working capital trends: Watch for improvements or further deterioration in net current assets.
• Liquidity ratios: Current ratio and quick ratio to assess short-term liquidity changes.
• Profitability and reserves: Track any accumulation of profits to strengthen equity.
• Director changes and related-party transactions: Note recent resignation of a director (Andrew Mars) and potential impact on governance or financial support.
• Compliance with filing deadlines remains satisfactory; maintain vigilance on timely submissions.