Company Number: SC706932

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: DECLINE
   MAC CABS LTD shows a weak financial position with declining net assets and worsening working capital over recent years. The company’s net current assets have turned negative (£-2,593 in 2024), indicating liquidity stress and potential difficulty meeting short-term obligations. The downward trend in net assets from £1,824 to £406 within two years also signals erosion of financial strength. Given these factors and absence of profit and loss details, the risk of default on credit facilities is elevated.

2. Financial Strength:
   The balance sheet is fragile. Fixed assets remain minimal and unchanged at £3,000, while current liabilities have increased significantly from £976 (2022) to £2,710 (2024). Current assets are negligible (£117 in 2024), unable to cover short-term liabilities. Net assets have declined steadily, reflecting weakening equity and limited reserves to absorb losses or support growth. The company is classified as micro, suggesting limited scale and financial buffers.

3. Cash Flow Assessment:
   Negative net current assets point to a working capital deficit, implying cash flow constraints. Without sufficient liquid assets or cash equivalents reported, it is likely the company relies heavily on external funding or director support to meet obligations. The data shows only one employee on average, indicating limited operational scale but no clear evidence of strong cash inflows from operations.

4. Monitoring Points:

• Track improvements or further deterioration in net current assets and liquidity ratios.
• Monitor changes in current liabilities and whether they are being managed or increasing.
• Review incoming cash flows and profitability once P&L data becomes available.
• Watch director appointments and ownership changes for signs of management stability or distress.
• Keep an eye on any overdue filings or credit defaults that may arise.