Company Number: 13970126

Analysis Date: 2025-07-29 16:37 UTC

1. Credit Opinion: DECLINE
   MAJA Property Limited demonstrates a weak financial position with negative net assets and shareholders' funds as of the latest accounts (FY ending 31 March 2024). The company’s current liabilities significantly exceed its current assets, resulting in a negative working capital position of approximately £137k. This poor liquidity profile raises concerns regarding its ability to service debt and meet short-term obligations. Furthermore, the company has substantial director loan balances, which appear to be funding the business rather than external financing. The lack of positive retained earnings and ongoing losses indicates a fragile financial trajectory with no clear evidence of profitability or cash flow improvement. Given these factors, the company currently lacks sufficient financial strength and resilience to justify new credit facilities without significant mitigation or guarantees.

2. Financial Strength:
   The balance sheet shows fixed assets of £130k, largely unchanged from the prior year, but total net assets have deteriorated from a positive £8.9k in 2023 to a negative £7.8k in 2024. The negative net current assets position (£-137k) reflects an inability to cover short-term liabilities with liquid assets. The director loans totaling £143.6k represent a significant creditor class, indicating reliance on insiders for funding. The absence of equity cushions and negative reserves highlight a weak capital base and an elevated risk of insolvency if trading conditions worsen.

3. Cash Flow Assessment:
   Current assets are minimal (£6.3k), predominantly cash or equivalents, while current liabilities exceed £143k. This imbalance suggests strained liquidity and working capital deficiencies, impairing operational flexibility. There is no indication of positive cash flow generation from operating activities, and ongoing director loan advances imply cash flow shortfalls are being internally funded rather than resolved through earnings or external credit. The company’s micro-entity status limits the detail available but the data clearly points to challenging cash flow management.

4. Monitoring Points:

• Working capital improvements and reduction of current liabilities, particularly director loans.
• Progress towards profitability and creation of positive retained earnings.
• Cash flow generation from operations to reduce reliance on director funding.
• Timely filing of accounts and confirmation statements to track ongoing compliance and financial updates.
• Any changes in ownership or director involvement that might affect financial support or governance.