Company Number: 12932397

Analysis Date: 2025-07-20 11:17 UTC

1. Credit Opinion: DECLINE. MAIZ GROUP LIMITED shows a significant deterioration in its financial position over the last year, with net current assets dropping from £29,988 in 2022 to £7,995 in 2023 and net assets declining from £39,538 to £15,158. This sharp decrease in working capital indicates weakening liquidity and potentially strained ability to meet short-term obligations. The company operates in management consultancy, which can be sensitive to economic cycles, and with only a single director and one employee, the business may lack operational resilience. The absence of detailed profitability data restricts full assessment, but the decline in balance sheet strength suggests caution. Without signs of turnaround or stronger cash flow generation, extending credit would carry elevated risk.

2. Financial Strength: The balance sheet reveals a micro-entity with limited fixed assets (£7,163) and a modest current asset base (£50,345) against current liabilities of £42,350. Although net assets remain positive, the 62% drop in net assets and 73% drop in net current assets within one year signals financial weakening. The company’s equity is solely shareholder funds of £15,158 with minimal share capital (£10). The shrinking net assets may reflect operational losses or increased liabilities. The financial position is fragile, with limited buffer to absorb shocks or fund growth.

3. Cash Flow Assessment: Current assets largely determine liquidity; however, the significant increase in current liabilities from £25,994 to £42,350 in 2023 raises concerns about short-term funding pressures. Net current assets decreased markedly, reducing working capital from nearly £30k to under £8k. This tighter liquidity position may impair the company’s ability to cover near-term obligations without external support. The small scale of the business (one employee) suggests limited internal cash generation capacity, increasing reliance on timely collections or external financing. No cash flow statements were provided, limiting precise cash flow evaluation.

4. Monitoring Points:

• Track quarterly or interim updates on cash balances and current liabilities to assess ongoing liquidity.
• Monitor profit and loss trends, particularly if any losses are eroding equity further.
• Watch for any increases in trade creditors or delayed payments to suppliers.
• Review any changes in director(s) or management that could affect governance and financial stewardship.
• Observe any changes in business scale or diversification that can impact revenue stability.