MAGGS HOUSING LTD

Executive Summary

MAGGS HOUSING LTD currently displays a weak financial position with negative equity and significant long-term liabilities relative to its minimal assets. The company’s micro-entity scale and lack of employees limit its cash flow generation, raising concerns about its ability to meet debt obligations. Credit facilities are not recommended without substantial improvement in capital structure and liquidity.

MAGGS HOUSING LTD - Analysis Report

Company Number: 13991140

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: DECLINE
   MAGGS HOUSING LTD shows a weak financial profile with net liabilities of £1,501 as of 31 March 2025, indicating negative net equity. Although the company is active and not in liquidation, the persistent negative shareholders' funds and increasing creditor obligations of £3,000 (due after more than one year) suggest potential difficulties in meeting long-term obligations. The micro-entity size and lack of employees make it reliant on limited resources and possibly the directors’ personal funding, which raises concerns about its ability to service new debt or credit facilities without additional capital injection or operational cash flow improvements.

2. Financial Strength:
   The balance sheet reveals very minimal fixed assets (£200) and current assets (£1,299), with no short-term creditors reported, but a significant long-term creditor balance of £3,000. Net current assets are positive at £1,299, which indicates some short-term liquidity, but overall net assets are negative at £1,501 due to the outstanding long-term liabilities. The company’s equity position has deteriorated year-on-year from £2,300 in 2022 to negative £1,501 in 2025, demonstrating a declining financial trajectory and erosion of capital.

3. Cash Flow Assessment:
   With no employees and limited current assets, liquidity depends heavily on cash or equivalents within current assets (which are low and only increasing slightly). The absence of creditors due within one year suggests no immediate short-term liabilities, but the long-term creditor balance may pose repayment challenges. The small size and micro-entity status imply limited operating cash inflows, raising concerns about working capital sufficiency to cover ongoing expenses and debt servicing.

4. Monitoring Points:

• Track changes in net assets and shareholder funds for signs of financial recovery or further deterioration.
• Monitor creditor balances and repayment schedules, especially the £3,000 long-term liabilities.
• Review cash and current asset levels quarterly to assess liquidity trends.
• Watch for any changes in director involvement or capital injections that might support financial stability.
• Keep an eye on filing compliance and any signs of financial distress or restructuring.