MALO BRIGHTON LTD

Executive Summary

MALO BRIGHTON LTD is currently financially distressed with net liabilities and a weakened equity base, raising serious concerns about its ability to meet debt obligations. While there is some asset growth, the company's significant long-term liabilities and tight liquidity profile present a high credit risk. Without improvements in profitability or capital structure, the company is not recommended for credit extension at this time.

MALO BRIGHTON LTD - Analysis Report

Company Number: 13146598

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion: DECLINE. MALO BRIGHTON LTD exhibits significant financial weakness with net liabilities of £31,087 as of the latest accounts (31 March 2024). The company’s total liabilities exceeding total assets indicate balance sheet insolvency. Despite some growth in fixed and current assets, the high level of long-term creditors (£105,456) far outweighs current assets (£22,320) and net current assets are marginally positive at £3,941. This raises concerns about the company’s ability to meet debt obligations timely and sustain operations without external financial support.

2. Financial Strength: The company’s balance sheet shows increasing fixed assets from £57,580 to £70,428, and current assets rising from £14,066 to £22,320, which is a positive sign of investment and operational growth. However, the current liabilities are about £18,379, and more critically, creditors due after one year have increased substantially from £69,600 to £105,456. The overall net assets have swung into negative territory from a marginal positive previously, indicating capital erosion and a weak equity base. Shareholder funds have deteriorated from £11,961 to a negative £31,087, signaling financial distress and poor capitalization.

3. Cash Flow Assessment: Net current assets are positive but minimal (£3,941), which suggests very tight liquidity. Current liabilities are only slightly covered by current assets, limiting working capital flexibility. The increase in employees from 5 to 7 may pressure cash flows further if not matched by revenue growth. The liabilities due beyond one year are substantial, indicating possible long-term financing obligations that may strain cash flows. No detailed cash flow statements are provided, but the balance sheet position implies liquidity risk and possible challenges in servicing debt on time.

4. Monitoring Points:

• Track net asset position and shareholder funds closely to detect any further erosion.
• Monitor current and long-term liabilities, especially the ability to refinance or repay £105k+ creditors due after one year.
• Watch working capital trends and cash flow statements when available to assess operational liquidity.
• Evaluate management actions to improve profitability or restructure debt.
• Keep an eye on employee count relative to revenue and cash flow generation to ensure sustainable operational cost base.