MANHATTAN MANDARIN LTD

Executive Summary

Manhattan Mandarin Ltd shows significant financial distress evidenced by ongoing negative net current assets and shareholders' deficit. However, the company remains compliant with statutory filings and benefits from shareholder financial support, underpinning its classification as a going concern. Close scrutiny of director loans and operational cash flow is essential to assess long-term viability.

MANHATTAN MANDARIN LTD - Analysis Report

Company Number: 14071819

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, reflected in persistent negative net current assets and shareholders' deficit over consecutive years. The current liabilities substantially exceed current assets, indicating risk in meeting short-term obligations without additional funding.

2. Key Concerns:

   • Negative Net Current Assets and Shareholders' Deficit: The company’s net current liabilities increased from £16,511 in 2023 to £31,134 in 2024, with shareholders' funds similarly negative, highlighting ongoing financial strain.
   • Reliance on Director/Shareholder Loans: The accounts note a £49,500 amount owed to the director, indicating dependence on related party funding rather than operational cash flow. This reliance may raise concerns about sustainability if such support ceases.
   • Limited Operational Scale and Revenue Information: The company is small with only one employee and no disclosed turnover or profit figures, limiting visibility on operational performance and cash generation capacity.

3. Positive Indicators:

   • Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, suggesting good regulatory compliance and governance in this regard.
   • Going Concern Statement Supported by Shareholder Support: The director’s report states that the company is a going concern based on shareholder financial support commitments, which mitigates immediate solvency risk.
   • No Auditor Qualification or Adverse Reports: The unaudited abridged accounts show no indication of audit concerns or qualifications, consistent with a small company exemption.

4. Due Diligence Notes:

   • Investigate the nature and terms of the director’s loan (£49,500), including repayment arrangements and any risk of withdrawal.
   • Review operational cash flow and revenue streams to assess the company’s ability to reduce reliance on external funding.
   • Confirm whether additional equity or debt injections are planned to address the growing deficit and if there is a realistic plan to achieve profitability.
   • Consider obtaining management accounts or internal forecasts for a clearer picture of ongoing business viability.
   • Verify the absence of any director disqualifications or regulatory issues given the single director structure.