MA EST LIMITED

Executive Summary

MA EST LIMITED currently faces high solvency and liquidity risks due to significant current liabilities exceeding current assets and minimal cash reserves. Although the company shows asset growth and compliance with filing obligations, its narrow equity and recent incorporation indicate a fragile financial position requiring close scrutiny of its debt obligations and operational plans. Investors should conduct further due diligence focusing on cash flow, asset liquidity, and management strength before engagement.

MA EST LIMITED - Analysis Report

Company Number: 14098975

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   Justification: MA EST LIMITED exhibits significant liquidity challenges as evidenced by large net current liabilities (£-366,458) compared to minimal cash reserves (£2,353) and a very narrow positive net asset position (£837). The company’s current liabilities within one year are substantial relative to assets, suggesting difficulty in meeting short-term obligations. The company is relatively new (incorporated 2022) with limited operational history, which increases uncertainty regarding operational stability.

2. Key Concerns:

• Liquidity Deficit: The company has a pronounced working capital deficiency, with current liabilities far exceeding current assets, signaling potential cash flow stress.
• Leverage and Debt Profile: High amounts of short and long-term creditors, including bank loans of £180,795, create repayment obligations that may be onerous given the low cash and minimal equity base.
• Lack of Profit and Negative Prior Net Worth: The company only recently moved from negative net assets (£-501 in 2023) to a marginal positive position (£837 in 2024), indicating fragile equity and unproven profitability or capital injection sufficiency.

3. Positive Indicators:

• Asset Growth: Tangible fixed assets (land and buildings) nearly doubled from £264,775 to £548,090 within one year, demonstrating investment in potentially valuable real estate assets aligned with the company’s business activities.
• Compliance Status: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings, indicating sound regulatory compliance.
• Experienced Directors with Control: Directors have clear ownership and voting rights, suggesting aligned management interests and governance clarity.

4. Due Diligence Notes:

• Assess the nature and terms of the bank loans and other creditor arrangements to understand repayment schedules, covenants, and potential refinancing risks.
• Review the company’s cash flow forecasts and business plans for real estate management and trading activities to evaluate operational sustainability and potential for profitability improvement.
• Investigate the valuation and liquidity of fixed assets to understand how readily they can be monetized if needed to improve liquidity.
• Confirm if there are any contingent liabilities or off-balance sheet commitments not disclosed in the filleted accounts.
• Understand the background, experience, and financial standing of the directors given their substantial control to assess management capability and commitment.