Company Number: 12736187

Analysis Date: 2025-07-29 16:16 UTC

1. Credit Opinion: DECLINE
   Mackey-Dokey Limited presents a weak credit profile. The company has persistent negative net assets and shareholders’ funds, indicating an insolvent balance sheet position. Moreover, working capital is significantly negative and has deteriorated over the past three years, showing inability to cover short-term liabilities. The lack of significant cash reserves and increasing current liabilities raise serious concerns about liquidity and repayment capacity. Without evidence of profitability or external financial support, the risk of default on credit obligations is high.

2. Financial Strength
   The company’s net assets are negative £16,052 as of July 2023, worsening from negative £14,382 the prior year. Fixed assets are modest (£17k) relative to liabilities, and the company relies heavily on current assets which are insufficient to cover current liabilities (£45,588). The shareholders’ funds are eroded due to accumulated losses, reflecting ongoing financial strain. The balance sheet shows no signs of improvement or capital injection, which undermines financial resilience.

3. Cash Flow Assessment
   Cash on hand is low at £2,179 with debtors at £10,213, but current liabilities remain high at £45,588, resulting in a net current liability of £33,196. This severe working capital shortfall indicates poor liquidity management and potential difficulties in meeting short-term obligations. The decline in cash reserves from £6,916 in 2022 to £2,179 in 2023 signals worsening cash flow. The small size and single employee base suggest limited operational scale to generate positive cash flows or absorb shocks.

4. Monitoring Points

• Monitor quarterly cash flow statements closely for any improvement in liquidity.
• Watch for capital injections or shareholder loans to stabilize net assets.
• Track debtor collections and aging to reduce working capital pressure.
• Assess any changes in current liabilities, especially short-term borrowings.
• Evaluate management’s strategy for returning to profitability and improving balance sheet strength.
• Follow updates on trading performance and any material contracts or new revenue streams.