MAGNAF LTD

Executive Summary

MAGNAF LTD reports a deteriorating financial position characterized by increasing net liabilities and negative working capital, raising significant solvency and liquidity concerns. While regulatory filings are current and governance centralized, the absence of profit and loss data limits assessment of operational sustainability. Further due diligence is required to clarify the company’s capacity to meet obligations and prospects for financial recovery.

MAGNAF LTD - Analysis Report

Company Number: 13527439

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with persistent and increasing net liabilities and negative shareholders' funds, indicating an inability to meet its obligations from current assets.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities worsened from £7,682 in 2023 to £12,371 in 2024, signaling deteriorating financial health.
• Working Capital Deficit: Consistently negative net current assets (current assets less current liabilities), increasing from -£7,682 to -£12,371, which could imply liquidity difficulties.
• Lack of Profit and Loss Disclosure: The absence of a filed profit and loss account limits insight into operational performance and cash flow generation, raising questions about ongoing business sustainability.

3. Positive Indicators:

• Up-to-date Filing: The company has filed its accounts and confirmation statement on time, indicating compliance with regulatory requirements.
• Single Director with Full Control: Mr. Ibrahima Wague is the sole director and 100% controller, which could facilitate rapid decision-making and strategic adjustments if needed.
• Micro-entity Status: The company is small, with minimal employees and financial scale, potentially limiting complexity in operations and reporting.

4. Due Diligence Notes:

• Investigate the causes of the increasing net liabilities and whether the company has any plans or access to capital to restore solvency.
• Request or review internal management accounts or cash flow statements to assess liquidity status and operational cash generation.
• Confirm the nature and timing of outstanding liabilities to evaluate short-term solvency risk.
• Assess the director’s plans for business viability, given the absence of profit and loss disclosures.
• Review any related party transactions or contingent liabilities not captured in the filed accounts.