MANOR PAYMENTS LTD

Executive Summary

Manor Payments Ltd shows significant weakening in liquidity and net asset position over the past year, with a current working capital deficit and dramatically reduced cash reserves. This financial deterioration, combined with limited operational scale and lack of disclosed profitability data, leads to a credit decline recommendation. Close monitoring of cash flow and working capital will be critical to reassess creditworthiness going forward.

MANOR PAYMENTS LTD - Analysis Report

Company Number: 13161210

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: DECLINE
   Manor Payments Ltd demonstrates a weakening financial position with a significant decline in net current assets from £2,675 positive in 2023 to a negative £2,472 in 2024, indicating liquidity stress. The cash reserves have dropped sharply from £14,375 to £956, raising concerns about the company’s ability to meet short-term obligations. The net assets also fell from £9,228 to £2,837, reflecting erosion of equity. The company is very small with only one employee, and limited fixed assets, which may constrain operational flexibility. The absence of a profit & loss account filing limits insight into profitability and cash generation. Given these factors and limited financial buffers, Manor Payments Ltd currently does not present a robust credit profile for new lending or extended trade credit without further mitigation.

2. Financial Strength:
   The balance sheet shows a small fixed asset base of £5,308 and a sharp decline in current assets to £956, all of which is cash. Current liabilities are £3,428, resulting in a working capital deficit of £2,472. The company’s net assets have decreased markedly by nearly 70% year on year. Shareholders’ funds now stand at £2,837, a steep decline from £9,228, signaling retained losses or capital erosion. The tangible asset depreciation charge is relatively high compared to additions, further reducing asset values. Overall, the financial strength is weak with insufficient liquidity to cover current liabilities, limited equity cushion, and signs of financial deterioration.

3. Cash Flow Assessment:
   The drastic reduction in cash balance from £14,375 to £956 is a red flag for liquidity and cash flow management. The negative net current assets indicate the company may be relying on short-term borrowing or delayed payments from creditors to fund operations. With only one employee and minimal current assets besides cash, the company’s working capital cycle appears constrained. The lack of profit & loss details restricts assessment of operational cash flow, but the balance sheet trend suggests cash outflows exceed inflows in the latest period. Immediate cash flow monitoring is essential to avoid payment defaults.

4. Monitoring Points:

• Track monthly cash balances and operating cash flow closely to ensure liquidity does not deteriorate further.
• Monitor current liabilities and creditor payment terms to avoid accrual of overdue payables.
• Evaluate any changes in working capital management or capital injections that could improve the deficit position.
• Obtain full profit & loss information to assess profitability trends and capacity for debt servicing.
• Review director and shareholder plans for financial restructuring or new financing arrangements.
• Watch for any adverse changes in trading activity or client payment behavior given industry risks in IT consultancy and data processing.