MAI-MAI &SON SCAFFOLDING LTD

Executive Summary

Mai-Mai &son Scaffolding Ltd presents significant financial distress with a deteriorating net asset position and negative working capital indicating solvency and liquidity risks. While compliance with filing requirements is up to date, the company’s operational sustainability is questionable given the absence of employees and declining asset base. Further due diligence is essential to understand the underlying causes and management’s plans for financial recovery.

MAI-MAI &SON SCAFFOLDING LTD - Analysis Report

Company Number: 13243869

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has deteriorated significantly over the last financial year, with net assets dropping from -£9,250 in 2023 to -£16,761 in 2024. Additionally, current liabilities exceed current assets by a wide margin, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position and negative shareholders’ funds suggest it is insolvent on a balance sheet basis.
• Liquidity Concerns: Current liabilities (£25,302) far exceed current assets (£6,039), resulting in a negative working capital of £19,263, which raises concerns about the company’s ability to meet short-term obligations.
• Operational Sustainability: There are no employees reported, and the company’s fixed assets have decreased over time, which may indicate reduced operational capacity or lack of investment in the business.

3. Positive Indicators:

• Compliance: The company has filed its accounts and confirmation statements on time, with no overdue filings or penalties noted.
• Active Status: The company remains active and is not in liquidation or administration, suggesting ongoing trading activities.
• Simple Capital Structure: Share capital is minimal (£1), which is typical for a micro-entity and poses limited capital risk.

4. Due Diligence Notes:

• Investigate the cause of the sharp increase in current liabilities in the latest year and whether these are trade creditors, loans, or other obligations.
• Review cash flow statements or bank statements if available to assess actual liquidity and cash management practices.
• Understand whether the company has contingent liabilities or off-balance sheet exposures that may further impact financial stability.
• Confirm the ongoing nature of the business operations given the absence of employees and declining fixed assets.
• Clarify the director’s plans for resolving the deteriorating financial position and any external support or financing arrangements in place.