M&A TECHNICAL SERVICES LTD

Executive Summary

M&A Technical Services Ltd shows considerable financial distress in its latest accounts, characterized by negative net assets and a working capital deficit that raise concerns over solvency and liquidity. While regulatory compliance is maintained and management control is clear, the sharp decline in financial health warrants further investigation into operational viability and funding plans. Investors should proceed cautiously and seek detailed financial and operational disclosures before engagement.

M&A TECHNICAL SERVICES LTD - Analysis Report

Company Number: 14684250

Analysis Date: 2025-07-29 14:55 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position in its latest year, with net liabilities of £1,104 and negative shareholders' funds. Current liabilities substantially exceed current assets, indicating potential solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The latest accounts reveal net liabilities of £1,104, a marked decline from the previous positive net assets of £150. This suggests erosion of capital and potential balance sheet insolvency.
• Working Capital Deficit: Current liabilities (£1,382) exceed current assets (£278) by a wide margin, implying the company may struggle to meet short-term obligations as they fall due.
• Absence of Cash Reserves: Cash at bank has fallen to zero from £9,115 the prior year, raising concerns about liquidity and the ability to fund ongoing operations or respond to unexpected expenses.

3. Positive Indicators:

• Active Status and Compliance: The company is active, not in liquidation, and filings (accounts and confirmation statements) are up to date with no overdue returns, indicating regulatory compliance and management awareness of statutory obligations.
• Single Director with Full Control: The sole director and 100% shareholder, Louise Shellby Malyon, provides clear accountability and decision-making authority which can facilitate swift strategic actions.
• Small Company Accounting Regime: The company benefits from simplified reporting and audit exemptions, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the causes behind the sharp deterioration from positive net assets to net liabilities within one year, including review of trading performance, any one-off write-offs or provisions, and changes in creditor/debtor balances.
• Obtain cash flow forecasts and bank statements to assess short-term liquidity and whether the company can meet immediate liabilities without recourse to additional funding.
• Confirm the nature and terms of the director’s loan account (£782 current liability) and any other related party transactions that may affect financial stability.
• Review management plans for turnaround or capital injection given the negative equity position.
• Examine contract pipeline and revenue generation capability given the company operates in a professional, scientific and technical sector classified under SIC 74909.