MADE FOR MORE AI LIMITED

Executive Summary

Made For More AI Limited demonstrates a fragile financial position with negative working capital and minimal equity, leading to concerns about liquidity and debt servicing capacity. The company’s current liabilities exceed its liquid assets, and cash flow constraints pose a significant risk. Credit facilities are not recommended without substantial improvement in financial strength or external support.

MADE FOR MORE AI LIMITED - Analysis Report

Company Number: 13303284

Analysis Date: 2025-07-29 12:08 UTC

1. Credit Opinion: DECLINE
   Made For More AI Limited shows persistent net current liabilities and a marginally positive but very low net asset base (£82 at 31 March 2024, down from £289 the prior year). The company’s current liabilities exceed current assets, resulting in negative working capital for the last two years, which raises concerns about short-term liquidity and the ability to meet immediate obligations. Cash balances remain under £1,100, insufficient to cover tax and other creditors due within one year (£10,934). Despite some growth in debtors, the overall financial position is weak and deteriorating, indicating limited capacity to service new or extended credit facilities without additional capital injection or operational improvements.

2. Financial Strength:
   The balance sheet exhibits very thin equity and low fixed asset values (£559 net book value), with limited tangible collateral. Retained earnings are minimal (£72), reflecting a small accumulated profit base after losses in prior years. The company’s share capital is nominal (£10). The increase in creditors, particularly taxation and social security liabilities (£9,159), signals potential cash flow strain and possible deferred tax payments. The trend over the last two years shows increasing current liabilities outpacing asset growth, weakening overall financial resilience.

3. Cash Flow Assessment:
   Liquidity is constrained with cash of only £1,067 and negative net current assets of £477 at the latest year-end. Debtor balances have increased to £9,390 but may not convert to cash quickly enough to cover short-term liabilities. The company’s working capital deficit suggests ongoing reliance on creditor financing or external funding to meet operational costs, which is a risk given the small size and low capital base. Without evidence of strong cash flow generation or access to additional funds, the company’s ability to sustain day-to-day operations and meet debt service commitments is doubtful.

4. Monitoring Points:

• Monitor changes in current liabilities and creditor aging, especially tax and social security payables.
• Track debtor collection effectiveness and cash conversion cycle to ensure timely inflows.
• Watch for any capital injections or equity increases that could strengthen the balance sheet.
• Review turnover and profitability data (when available) to assess operational improvements.
• Consider director financial conduct and any related party transactions due to the single director structure.