MAMU ENTERPRISES LTD

Executive Summary

Mamu Enterprises Ltd currently shows a vulnerable financial position with significant liquidity shortages and increasing net liabilities. The company’s inability to cover short-term debts and negative shareholders’ funds present a high credit risk. Without clear evidence of financial recovery or external support, credit facilities are not recommended at this time.

MAMU ENTERPRISES LTD - Analysis Report

Company Number: 13840228

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: DECLINE
   Mamu Enterprises Ltd exhibits significant financial distress. The latest accounts show a sharp deterioration in net current assets from a positive £715 in 2023 to a negative £34,215 in 2024, indicating liquidity problems. Net liabilities have increased substantially to £39,735. These figures suggest the company is currently unable to meet its short-term obligations, raising high credit risk. The business operates in a competitive sector (unlicensed restaurants and cafes), which is vulnerable to economic fluctuations. Without evidence of turnaround or strong financial support, credit exposure is not advisable.

2. Financial Strength:
   The balance sheet reveals a weakening financial position over the last year. Fixed assets have slightly declined from £6,470 to £5,050, and current assets decreased by about 32% (£12,262 to £8,329). Current liabilities have nearly quadrupled to £42,544, driven by creditors due within one year, causing net current liabilities of £34,215. Long-term liabilities remain at £7,890. Shareholders’ funds are negative and have worsened from -£1,760 to -£39,735, indicating accumulated losses and erosion of capital. The company is in a net liability position, which means the total liabilities exceed the total assets, reflecting poor solvency.

3. Cash Flow Assessment:
   The negative net current assets position signals a working capital deficit, suggesting cash flow difficulties in meeting immediate liabilities. No cash or cash equivalents line is explicitly provided, but the drop in current assets and rise in current liabilities imply strained liquidity. The increase in average employees from 3 to 5 may have added to operating costs without corresponding revenue growth. Overall, cash flow appears insufficient to cover short-term debts, increasing the risk of default on payments.

4. Monitoring Points:

• Monitor subsequent quarterly management accounts to assess cash flow improvements or worsening liquidity.
• Watch creditor days and supplier payment behavior for signs of distress.
• Track any changes in capital structure or external funding injections.
• Review director actions and business strategy to stabilize finances.
• Keep an eye on trading conditions in the restaurant sector, especially post-COVID recovery dynamics.
• Confirm timely filing of future accounts and confirmation statements to ensure regulatory compliance.