MADE 82 LTD

Executive Summary

MADE 82 LTD exhibits ongoing financial weakness characterized by persistent negative net assets and working capital deficits, despite some cash balance improvement. The company’s limited scale, loss accumulation, and increased current liabilities raise concerns about its ability to service new credit. Credit facilities are not recommended without substantial improvement and clearer evidence of sustainable cash flow and profitability.

MADE 82 LTD - Analysis Report

Company Number: 13275622

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: DECLINE
   MADE 82 LTD presents a weak credit profile. The company has been operating since 2021 and shows persistent negative net assets and shareholders' funds, indicating accumulated losses and erosion of equity. The latest financial year (2024) shows a slight improvement in net current liabilities but the company remains significantly insolvent on a balance sheet basis with a net asset deficit of £736. Current liabilities have increased substantially, driven by other creditors and accrued liabilities, raising concerns about liquidity management and short-term solvency. The director is a sole individual with a background as a graphic designer but there is no evidence of financial or operational scale to support debt servicing capacity. Given these factors, the company is not in a position to comfortably service new credit facilities, and the financial trajectory does not demonstrate sustainable improvement or profitability.

2. Financial Strength:
   The balance sheet reveals limited fixed assets (£2,032) and current assets (£5,068) heavily concentrated in cash (£5,027) but minimal trade debtors (£41), implying low receivables turnover or sales on credit. However, current liabilities have grown to £7,836, resulting in a negative working capital position of £2,768. The company’s net asset position remains negative, though it has improved from the prior year’s £2,287 deficit. This indicates ongoing losses have eroded equity, and the company is technically insolvent. The minimal share capital (£1) also reflects a weak capital base. Overall, financial strength is poor, with the balance sheet reflecting undercapitalization and a fragile equity position.

3. Cash Flow Assessment:
   Cash holdings increased significantly from £772 to £5,027 in the latest year, which is a positive indicator of liquidity. However, this may reflect short-term funding injections rather than organic cash generation. The negative net current assets position implies working capital deficits that could pressure operational cash flow. The increase in accrued liabilities suggests expenses are being deferred or delayed payments to suppliers, which is a risk factor for short-term liquidity. Without detailed cash flow statements, it is difficult to ascertain operational cash flow sufficiency, but the financials signal reliance on external funding or director inputs to maintain liquidity. The absence of employees and low debtors also suggest limited ongoing trading activity.

4. Monitoring Points:

• Track improvements in net assets and equity to assess if losses are being reversed.
• Monitor current liabilities relative to current assets to detect worsening liquidity.
• Watch cash balances and their source to understand sustainability.
• Review director’s strategy for profitability and growth to determine business viability.
• Keep an eye on any significant changes in creditors, especially accrued liabilities.
• Monitor filing compliance and any changes in company status or control.