MANANNAN FIN LIMITED

Executive Summary

MANANNAN FIN LIMITED faces significant liquidity and solvency challenges, with current liabilities vastly exceeding short-term assets and a low equity base. While the company holds substantial fixed assets in real estate, the negative working capital position and minimal operational activity raise concerns about its ability to meet obligations without additional funding or asset disposals. The company is compliant with filing requirements, but further investigation into liabilities and asset liquidity is recommended to fully assess financial stability.

MANANNAN FIN LIMITED - Analysis Report

Company Number: 13127592

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by substantial current liabilities far exceeding current assets. Negative net current assets indicate an inability to meet short-term obligations.

2. Key Concerns:

• Severe Liquidity Deficit: The company’s current liabilities (£803,098) drastically surpass current assets (£27,559), resulting in net current liabilities of approximately £775,539. This suggests critical cash flow constraints.
• Negative Working Capital Trend: The negative net current assets position has persisted from the previous year with little improvement, indicating ongoing operational cash flow issues.
• Small Share Capital and Equity Base: Share capital is minimal (£11), and shareholders’ funds are low (£43,500), limiting the company’s buffer to absorb losses or liquidity shocks.

3. Positive Indicators:

• Significant Fixed Assets: The company holds fixed assets valued at £819,039, which may represent valuable real estate assets under its SIC code (other letting and operating of own or leased real estate). This could provide collateral for financing or potential sale to improve liquidity.
• Up-to-date Filings: Both accounts and confirmation statements are filed on time, reflecting compliance with statutory filing requirements, reducing regulatory risk.
• Stable Control and Governance: Single director and 100% owner, Maria Teresa Sykes, has maintained consistent directorship since incorporation, indicating continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to assess urgency and possibility of restructuring or refinancing.
• Confirm valuation and liquidity of fixed assets, including any encumbrances or restrictions on sale/use.
• Review cash flow statements or management accounts if available to understand operational cash flows and forecast liquidity.
• Assess business model sustainability given zero employees and limited operational disclosures; understand how income is generated and whether the company relies on external funding.
• Confirm absence of director disqualifications or regulatory sanctions beyond public records.
• Verify whether the company is involved in related party transactions, given the director is also the sole significant controller.