Company Number: 13788000

Analysis Date: 2025-07-20 16:49 UTC

1. Credit Opinion: APPROVE with caution. M & F CONSTRUCTION LIMITED is a very young micro-entity company incorporated in late 2021, engaged in domestic building construction. The company shows positive net current assets and net assets, albeit modest and limited in absolute value (£11,089 as of end 2023). Given the small scale and minimal financial complexity, the credit risk is low for small credit lines. The absence of employees and limited asset base suggest a simple operational structure, likely owner-run. The single director and 100% shareholder Mr. Naser Minaee appears to maintain control, with no adverse records. However, the lack of profitability, cash flow details, or substantial assets means lending should be limited and monitored closely.

2. Financial Strength: The balance sheet reflects a very small capital base, with net assets increasing from £905 at the end of 2021 to £11,089 at the end of 2023. Current assets increased similarly, indicating some growth in working capital. There are no reported liabilities, which supports solvency but also suggests limited business activity or conservative financial management. The micro-entity status limits disclosure detail, but total assets and equity remain low, consistent with a micro-sized business with minimal fixed assets or debt.

3. Cash Flow Assessment: The company shows positive net current assets, indicating liquidity is present to meet short-term obligations. However, the absolute level of current assets (£11,089) is very modest, and there is no detailed profit and loss or cash flow statement provided. The absence of employees and minimal asset base suggests a lean operation, potentially owner-funded. The company’s ability to generate operational cash flow from construction activities is unconfirmed and should be verified before extending credit beyond minimal limits.

4. Monitoring Points:

• Track growth in turnover and net assets to confirm business expansion.
• Monitor cash flow statements and payment behavior on trade creditors if available.
• Confirm absence of liabilities and overdue payments in future filings.
• Review any changes in director or ownership structure that may impact control or financial stability.
• Watch for any overdue filings or signs of financial distress as the company matures.