Company Number: 12681393

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent net current liabilities exceeding £380k and negative shareholders’ funds nearing £190k as of the latest financial year. The imbalance between current assets and liabilities, coupled with ongoing losses, indicates a high risk of financial distress.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£608k) substantially exceed current assets (£227k), resulting in negative working capital of approximately £381k, suggesting challenges in meeting short-term obligations.
• Negative net assets and equity: The company’s shareholders’ funds are negative and deteriorating (£-189,897 in 2024 vs. £-153,436 in 2023), indicating accumulated losses eroding the capital base.
• Reliance on related-party or deferred receivables: A large portion of debtors includes deferred tax assets (£82k) and other debtors (£85k), which may not be readily convertible to cash, further stressing liquidity.

3. Positive Indicators:

• Increasing cash balance: Cash at bank has doubled from £22k to £45k in the latest year, which may reflect some improvement in cash management or operational inflows.
• Growing turnover and operational scale: The company increased its average workforce from 11 to 13 employees, suggesting some business expansion.
• No overdue statutory filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Assess the composition and collectability of “other debtors” (£85k) and deferred tax asset (£82k): Determine the timing and certainty of cash inflows from these balances.
• Review creditor terms and potential for restructuring: Examine the nature and maturity of current liabilities (£608k) to evaluate immediate cash requirements or negotiated payment plans.
• Evaluate going concern assumptions: Given persistent losses and negative equity, investigate director plans for turnaround, refinancing, or capital injection.
• Understand the impact of fixed asset impairments and depreciation: The company reports significant fixed assets (£191k net), and impairment risk should be assessed in relation to business viability.

Executive Summary:
HAUNT MCR LIMITED is currently facing high financial risk due to sustained negative working capital and net equity deficits. Although regulatory compliance is maintained and cash balances have improved modestly, the company’s ability to meet short-term liabilities and sustain operations without further capital support remains questionable. Further scrutiny of debtor collectability and creditor arrangements is essential to assess near-term solvency.