M N A CLADDING (UK) LIMITED

Executive Summary

M N A Cladding (UK) Limited is a small, relatively new company with sound net assets and liquidity supported partly by related party funding. While compliance and cash reserves are positive, reliance on capital support from its parent and a marked reduction in trade debtors merit further review. Overall, the company’s risk profile is medium given its early stage and operational scale.

M N A CLADDING (UK) LIMITED - Analysis Report

Company Number: 13246176

Analysis Date: 2025-07-20 17:58 UTC

1. Risk Rating: MEDIUM
   Justification: M N A Cladding (UK) Limited shows solid net current assets and positive net assets with no overdue filings, indicating operational compliance and reasonable solvency. However, the company is relatively young (incorporated 2021) with modest share capital and reliance on capital support from its parent company, which poses some dependency risk. The decrease in current assets and trade debtors in 2024 compared to 2023 warrants attention.

2. Key Concerns:

• Dependency on Parent Company Support: The £102,029 capital support from M N A Group (East Yorkshire) Limited, with no immediate repayment plan, indicates reliance on related party funding, which may mask underlying cash flow constraints.
• Decreasing Trade Debtors and Current Assets: Significant reduction in trade debtors from £362k (2023) to £156k (2024) and overall current assets decline could impact liquidity and revenue consistency.
• Limited Operating History and Scale: Incorporated in 2021, with only 2 employees and small share capital (£133), the company’s size and short track record limit visibility into its operational stability.

3. Positive Indicators:

• Strong Net Current Assets and Net Assets: Despite some decreases, net current assets remain healthy at £310k and net assets at £323k, suggesting the company can meet short-term obligations.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good compliance and governance practices.
• Adequate Cash Reserves: Cash at bank increased to £243k in 2024 from £151k in 2023, which supports liquidity.

4. Due Diligence Notes:

• Investigate the terms and conditions of the £102k capital support from the parent company and its impact on the company’s cash flow and solvency.
• Review debtor ageing and collectability given the significant drop in trade debtors, to assess credit risk and revenue sustainability.
• Obtain management accounts or forecasts to evaluate current trading performance and cash flow trends beyond the year-end date.
• Clarify the nature of provisions for liabilities (£4k) and any contingent liabilities or risks not visible in the balance sheet.
• Understand the company’s client base and contract structure in the building completion and finishing sector (SIC 43390) to assess operational stability.