MAINCE LIMITED

Executive Summary

MAINCE LIMITED shows significant financial weakness with negative net assets and deteriorating working capital, indicating liquidity stress and overleveraging. The company’s balance sheet and cash flow position do not currently support additional credit risk. Close monitoring of liquidity metrics and creditor obligations is essential should circumstances change.

MAINCE LIMITED - Analysis Report

Company Number: 13726052

Analysis Date: 2025-07-29 16:39 UTC

1. Credit Opinion: DECLINE
   MAINCE LIMITED exhibits weak financial health, with net liabilities and negative shareholders’ funds as at the latest year end. The company’s working capital position has deteriorated significantly, turning negative from a positive balance the prior year, indicating potential liquidity stress. The presence of substantial creditors due after one year (£72,952) combined with negative net assets suggests an overleveraged balance sheet. Given these factors and the company’s limited trading history since incorporation in late 2021, it presents a high risk profile for new credit facilities. Approval is not recommended without substantial improvement in financial metrics and evidence of positive cash flow generation.

2. Financial Strength:
   The company’s total fixed assets increased substantially to £191,966 in the latest year, likely reflecting capital investment in software development or infrastructure, but this has not yet translated into equity value. Current liabilities more than doubled to £326,659, overwhelming current assets of £193,913 and causing net current liabilities of £132,673. Total net assets remain negative at £13,659, a slight improvement from prior year but still indicative of insolvency risk. The capital structure is weak with negative shareholder funds, and the company carries significant long-term creditor obligations. Overall, the balance sheet shows signs of financial distress and insufficient equity buffer.

3. Cash Flow Assessment:
   The negative net current assets position signals potential liquidity constraints. Without detailed cash flow statements, it is reasonable to infer from the balance sheet that the company may face challenges meeting short-term obligations as current liabilities exceed current assets by a wide margin. The increase in creditors and working capital deficit suggest cash outflows may be exceeding inflows. The absence of a positive cash reserve or strong liquid assets means ongoing operations could depend on continued external financing or shareholder support, which may not be sustainable.

4. Monitoring Points:

• Quarterly review of liquidity ratios including current ratio and quick ratio to monitor working capital trends.
• Track credit terms and aging of payables to assess payment behavior and creditor pressure.
• Monitor any changes in long-term liabilities to evaluate refinancing risks.
• Review any subsequent filings or accounts for improvements in profitability or cash flow generation.
• Keep watch on director actions and any changes in ownership or control that might impact financial support.