MANTRA DIAGNOSTICS LIMITED

Executive Summary

Mantra Diagnostics Limited exhibits a solid net asset position with no overdue filings and credible management, supporting a positive credit stance. However, limited liquidity and the early-stage nature of the business suggest moderate cash flow risk. Credit facilities may be approved with conditions and ongoing monitoring of liquidity and operational funding.

MANTRA DIAGNOSTICS LIMITED - Analysis Report

Company Number: 13040292

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: APPROVE with caution. Mantra Diagnostics Limited is a micro-entity operating in technical testing and analysis with a stable net asset base and no overdue filings. The company shows a sound equity position and manageable liabilities but has no employees and limited current asset liquidity relative to current liabilities. The business appears early-stage or R&D focused, which may imply irregular cash flows. The directors are credible academic professionals, which supports governance quality. Overall, the company can be extended modest credit facilities with monitoring due to its asset backing and clean compliance record, but its limited working capital and early-stage nature warrant some caution.

2. Financial Strength: The company’s balance sheet shows net assets of £236,994 as at 30 November 2024, down slightly from £243,317 the prior year. Fixed assets represent the majority (£296k) of total assets, indicating investment in long-term technology or equipment. Current assets (£40.6k) are lower than current liabilities (£100k), but net current assets are quoted as positive (£40,519), suggesting some classification or timing differences in liabilities reporting. Long-term liabilities remain stable at £100,000. The shareholders' funds are solid for a micro entity, reflecting retained capital and possibly some reserves. No employees are reported, consistent with a research or early development stage. The company is solvent but has limited liquidity.

3. Cash Flow Assessment: The current asset base is modest relative to current liabilities, implying tight short-term liquidity. With no employees and presumably low operational outflows, cash burn may be limited, but working capital is constrained. There is no filed profit and loss summary to assess operational cash generation; however, the stable net asset position suggests no significant deterioration. The company’s ability to meet near-term obligations depends on careful cash management and possibly shareholder support or external funding. Absence of audit and micro-entity reporting means less financial transparency, so cash flow risk is moderate.

4. Monitoring Points:

• Liquidity ratios and working capital trends: Monitor current assets vs. liabilities for any signs of strain.
• Debt servicing capacity: Watch for new borrowing or changes in creditor terms.
• Cash flow statements when available: To assess operational cash generation or funding needs.
• Directors’ strategic plans: To understand funding sources and growth trajectory.
• Any changes in fixed assets or capital structure: To detect major investments or funding events.
• Compliance with filing deadlines and regulatory updates: To ensure ongoing transparency and governance.