MACARONI DELIVERY MANAGEMENT LTD

Executive Summary

Macaroni Delivery Management Ltd is currently financially weak with negative net assets and insufficient liquidity to cover short-term liabilities, indicating high credit risk. The company’s lack of operational scale and negative working capital suggest inability to service debt at present. Credit approval is not recommended until financial strength and cash flow improve substantially.

MACARONI DELIVERY MANAGEMENT LTD - Analysis Report

Company Number: 14216981

Analysis Date: 2025-07-29 17:11 UTC

1. Credit Opinion: DECLINE
   Macaroni Delivery Management Ltd exhibits weak financial fundamentals with negative net assets (£-241) and shareholders' funds (£-341), indicating insolvency on a balance sheet basis. The company’s current liabilities (£959) exceed current assets (£718), yielding negative working capital (-£241), which raises concerns about its ability to meet short-term obligations. Given it is a newly incorporated business (2022) with no employees and limited operational history, there is insufficient evidence of sustainable revenue generation or cash flow to support debt servicing. Without a clear turnaround plan or capital injection, credit extension carries high risk.

2. Financial Strength:
   The company’s balance sheet is fragile. It reports no fixed assets or significant tangible/intangible assets, and negligible cash reserves (£718). The negative net assets position is primarily driven by accumulated losses reflected in the profit and loss reserve (£-341). The company is in the micro entity reporting category and has no external audit requirements, so financial transparency and rigor may be limited. The absence of employees and the nature of the business (food services and catering) suggest low asset intensity but also low financial buffer.

3. Cash Flow Assessment:
   Current liabilities exceed cash and other current assets, resulting in negative net current assets. The small cash balance is insufficient to cover trade creditors (£713) and other creditors (£246). The firm’s liquidity position is precarious, with no evidence of operating cash inflows or working capital management. This weak cash position undermines confidence in the company’s ability to meet immediate financial obligations or manage unexpected expenses.

4. Monitoring Points:

• Improvement in net current assets and liquidity position
• Turnaround in profitability and movement to positive retained earnings
• Evidence of revenue growth and operational scale-up beyond zero employees
• Changes in capital structure or injection of equity to strengthen shareholders’ funds
• Timely filing of accounts and confirmation statements to ensure transparency
• Any director changes or disclosures that may affect company governance.