Company Number: 13571378

Analysis Date: 2025-07-20 14:20 UTC

1. Credit Opinion: DECLINE
   Makisu Ltd shows a weak financial position with persistent net liabilities and negative shareholders’ funds, indicating an inability to cover its debts with assets. The company has a history of negative working capital and worsening net liabilities, which raises serious concerns about its capacity to meet short-term and long-term obligations. The director loans form a significant part of current liabilities, suggesting reliance on director funding rather than sustainable business cash flows. Without a clear turnaround plan or equity injection, credit risk is high.

2. Financial Strength:
   The balance sheet reveals net assets of (£32,033) as of August 2024, deteriorated from (£24,751) the prior year. Fixed assets (both tangible and intangible) are minimal (£35,227), and net current assets are deeply negative (£-48,720). Current liabilities increased significantly from £37,518 in 2023 to £52,747 in 2024, largely due to loans from directors (£50,788). Non-current liabilities reduced slightly but remain material (£18,540). The company’s capital structure is weak with negative equity and no retained earnings buffer.

3. Cash Flow Assessment:
   Cash on hand remains very low (£4,027), insufficient to cover even a fraction of current liabilities. The negative working capital position signals liquidity strain and potential difficulty in meeting immediate payables. The reliance on director loans to fund operations highlights weak operational cash generation. There are no signs of improving cash flow or working capital management in the past years. This liquidity risk undermines the company’s ability to service debt or sustain operations under financial stress.

4. Monitoring Points:

• Watch for any equity injections or restructuring of director loans to improve balance sheet.
• Monitor cash flow improvements or operational profitability to reduce reliance on external funding.
• Track changes in current liabilities and working capital to assess liquidity trends.
• Review management actions on cost control and sales growth in the food services sector.
• Observe compliance with filing deadlines and any director changes that could indicate governance risks.