MABRE PROJECTS LTD

Executive Summary

Mabre Projects Ltd is a newly formed micro-entity with negative net assets and a significant working capital deficit, reflecting a fragile financial position and limited liquidity. The company currently lacks the financial capacity to support credit facilities, and ongoing monitoring of cash flow and balance sheet improvements will be essential before reconsidering credit support. Given these factors, credit approval is not advisable at this time.

MABRE PROJECTS LTD - Analysis Report

Company Number: 14785381

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE
   Mabre Projects Ltd shows a weak financial position with net liabilities of £10,340 as of the latest reporting date. The company is newly incorporated (April 2023) and has not yet demonstrated profitability or positive working capital. The current liabilities exceed current assets by a wide margin, indicating potential liquidity challenges. Given the absence of operating history, negative net assets, and minimal current assets (£1,128), the company lacks the financial strength to reliably service debt or credit facilities at this stage.

2. Financial Strength:
   The balance sheet reflects a micro-entity with net current liabilities of £9,940 and overall net liabilities of £10,340. This indicates that total liabilities and accruals outweigh assets, meaning shareholder funds are negative. The company’s financial structure is fragile, with minimal fixed or current assets and an overhang of creditors. No retained earnings or reserves exist, consistent with a start-up stage entity focused on management consultancy (SIC 70229). The absence of tangible assets or equity cushions suggests poor financial resilience.

3. Cash Flow Assessment:
   Current assets of only £1,128 against current liabilities exceeding £11,000 highlight a working capital deficit that may impair day-to-day liquidity. The company’s cash or equivalents are insufficient to cover short-term obligations, creating a risk of payment delays or default. As the business has only one employee (the director) and no audit requirement, cash flows are likely limited and undeveloped. Without additional funding or positive cash inflows, short-term liquidity pressure is evident.

4. Monitoring Points:

• Quarterly updates on cash balances and creditors to confirm liquidity improvements or worsening.
• Progress toward generating positive operating cash flows and profitability.
• Changes in net assets and current liabilities to assess balance sheet strengthening.
• Any director loans or external financing that may affect credit exposure.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.