M & F VIP PLUS LTD

Executive Summary

M & F VIP PLUS LTD shows a marginally improved but still precarious financial position with net current liabilities and minimal equity. The company’s liquidity constraints and small asset base suggest a cautious lending approach with close monitoring. Conditional credit approval is recommended for limited exposure with safeguards in place.

M & F VIP PLUS LTD - Analysis Report

Company Number: SC695618

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M & F VIP PLUS LTD is a micro private limited company with a short trading history since incorporation in 2021. The financials show a modest improvement from net liabilities of £229 at 2023 year-end to net assets of £161 at 2024 year-end. However, the company continues to operate with significant net current liabilities (working capital deficit of £1,198 in 2024) indicating liquidity pressures. Given the small scale, limited fixed assets (£1,359), and minimal equity, credit facilities should be cautiously sized and closely monitored. Approval could be considered if loan amounts are small, repayment terms are short, and additional security or personal guarantees are provided.

2. Financial Strength:
   The balance sheet shows very limited fixed assets and the company remains reliant on short-term liabilities exceeding current assets by a wide margin. The net asset position turned positive in 2024 but only marginally (£161), reflecting a slight recovery from prior years’ losses. Shareholders’ funds remain minimal (£161), indicating very thin capitalization. The company’s small scale and limited financial buffer reduce resilience to adverse events or market shocks.

3. Cash Flow Assessment:
   The working capital deficit of £1,198 suggests ongoing liquidity constraints that could impact the company’s ability to meet short-term obligations without external support. Current liabilities are consistently high relative to current assets, and there is no indication of cash reserves or strong debtor positions to alleviate these pressures. The reduction in average employee numbers from 5 to 2 might indicate cost-cutting, but also suggests possible downsizing or reduced operational scale which may affect cash inflows.

4. Monitoring Points:

• Monitor quarterly or interim financial updates to track working capital trends and net asset position.
• Review debtor collection periods and creditor payment terms to assess cash flow management.
• Watch for any increase in short-term borrowings or late payment of suppliers, which could signal worsening liquidity.
• Keep oversight on management actions regarding cost control and revenue growth to improve financial stability.
• Ensure timely filing of annual accounts and confirmation statements to avoid regulatory risk.