Company Number: 12658004

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: MEDIUM

The company appears solvent with positive net current assets and shareholders' funds as of the latest accounts. However, the very low cash balance relative to current liabilities and the business model's reliance on debtors (amounts owed by related group undertakings) raise some liquidity concerns. The company’s small size and limited employee base present operational risks, though no regulatory or compliance issues are evident.

2. Key Concerns:

• Liquidity risk due to minimal cash (£1,667) against current liabilities (£28,018), potentially affecting the ability to meet short-term obligations.
• High debtor concentration with amounts owed by group undertakings (£33,091), posing a risk if intra-group funding or payments are delayed.
• Limited operational scale (2 employees) and small equity base (£6,740), which may constrain resilience against business disruptions or market changes.

3. Positive Indicators:

• Consistent positive net current assets and shareholders’ funds over recent years indicate a stable balance sheet.
• The company is active and compliant with filing deadlines, reflecting good governance practices.
• The backing of a parent company (MGPM Holdings Limited) which owns 75-100% shares and voting rights, potentially providing financial support and oversight.
• An unqualified auditor’s report confirms the accounts present a true and fair view of the company’s financial position.

4. Due Diligence Notes:

• Investigate the nature and creditworthiness of the group undertakings owing the company money to assess the reliability of debtor balances.
• Review cash flow statements or management accounts (not publicly filed) to evaluate actual liquidity and operational cash generation.
• Understand the operational dependency on the parent group and any related party transactions, especially given exemptions taken on related party disclosures.
• Assess the business model's sustainability given the small workforce and limited capital base.
• Confirm no director disqualifications or regulatory sanctions exist beyond what is publicly available.