M20 BUILD LIMITED

Executive Summary

M20 Build Limited's financial condition has worsened significantly from 2022 to 2023, with net assets and cash balances plunging and liquidity tightening. The company currently lacks the financial strength and cash flow stability to reliably meet credit obligations. Given these factors, credit approval is declined pending material improvements or recapitalization.

M20 BUILD LIMITED - Analysis Report

Company Number: 13796524

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: DECLINE
   M20 Build Limited exhibits significant financial distress as evidenced by a drastic decline in net assets from £20,607 at the end of 2022 to only £1,268 at the end of 2023. The severe reduction in current assets, particularly cash dropping from £20,311 to £2,729, combined with a still material current liabilities balance of £2,010, indicates a liquidity squeeze. The company’s ability to service debt or sustain operations appears severely compromised. Without additional capital injection or operational turnaround, lending further credit would pose high risk.

2. Financial Strength:
   The balance sheet shows a near-total erosion of equity in 2023. Fixed assets are minimal (£535) and have depreciated slightly. Current assets have collapsed by approximately 90% mainly due to a reduction in both cash and trade debtors (from £8,290 to nil). Current liabilities have reduced but remain substantial relative to assets. Shareholders’ funds have almost vanished, reflecting accumulated losses and a weak capital base. This financial position leaves the company vulnerable to insolvency risks.

3. Cash Flow Assessment:
   Cash on hand and in bank has dropped sharply, suggesting negative operating cash flows or large outflows in investments or financing activities. Debtors have disappeared indicating either write-offs or a halt in sales on credit. The company retains positive net current assets of £733 but this is a small buffer relative to the previous year. Working capital management appears poor or the business is contracting rapidly, signaling liquidity challenges that could impair debt servicing and operational continuity.

4. Monitoring Points:

• Quarterly cash flow and bank balances to assess liquidity trends
• Debtor collection and credit control effectiveness
• Profitability and turnover recovery to rebuild equity
• Any additional capital contributions or restructuring efforts by the director/owner
• Tax liabilities and payment status given the high corporation tax creditor in 2022 (£8,851) and still significant in 2023 (£1,878)

Executive Summary:
M20 Build Limited has experienced a substantial deterioration in financial health over the last year, with net assets nearly depleted and cash reserves sharply reduced. The company’s liquidity position is weak and its ability to meet short-term obligations and service debt is questionable. Without clear signs of operational recovery or capital support, the credit risk is high and further lending is not advisable at this stage.