MANGO MONKEYS LTD

Executive Summary

Mango Monkeys Ltd presents a medium risk profile characterized by strong asset backing via investment property and growing reserves, partially offset by significant secured debt and previous working capital deficits. While regulatory compliance is sound, liquidity and related party transactions merit closer review to fully assess ongoing operational stability and financial resilience.

MANGO MONKEYS LTD - Analysis Report

Company Number: 13370866

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

1. Risk Rating: MEDIUM
   Justification: Mango Monkeys Ltd shows a solid net asset position with growth from £429k in 2023 to £643k in 2024, supported by appreciating investment property. However, the company carries significant long-term liabilities (£400k+ secured bank loans) exceeding current assets, along with a history of negative net current assets until the latest year. The presence of related party transactions and director loans also warrants caution.

2. Key Concerns:

• Liquidity Risk: The company had negative net current assets in 2021-2023, indicating potential short-term liquidity pressures, though improved in 2024. Current liabilities remain high relative to current assets, suggesting cash flow management challenges.
• Leverage and Solvency: Bank loans secured on investment property total over £400k, a material obligation for a small company. While net assets exceed liabilities, high gearing may constrain flexibility.
• Related Party Transactions and Director Loans: Rental income from a related company (Optima Site Solutions Limited) and director loans (~£14.5k outstanding) present potential conflicts of interest and related party risk that require scrutiny.

3. Positive Indicators:

• Asset Quality and Revaluation Gains: The company holds investment property valued at £950k, up from £917k, which materially supports the balance sheet and equity base.
• Profit and Loss Reserve Growth: Retained earnings increased by nearly £190k in the latest year, indicating profitable operations or revaluation impacts.
• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue filings noted, reflecting good governance and regulatory compliance.

4. Due Diligence Notes:

• Verify cash flow adequacy and working capital management given historical negative net current assets and current liability levels.
• Examine the terms and covenants of secured bank loans, including repayment schedules and property valuations underpinning security.
• Assess the nature, terms, and independence of related party transactions with Optima Site Solutions and director loans for potential conflicts or financial dependency.
• Request underlying profit and loss details (not included in filings) to confirm sources of reserves growth and operational sustainability.
• Confirm the valuation methodology for investment property, including any external appraisals beyond director valuations.