MANU&DAVID TRANS LTD

Executive Summary

MANU&DAVID TRANS LTD exhibits significant solvency concerns highlighted by negative equity and substantial long-term liabilities. While the company maintains regulatory compliance and shows some short-term asset growth, the overall financial position raises material risks for investors. Further investigation into creditor terms and operational cash flows is essential before considering investment.

MANU&DAVID TRANS LTD - Analysis Report

Company Number: 12507709

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: HIGH
   The company shows a materially negative net asset position and significant long-term liabilities exceeding current assets, indicating solvency challenges. The micro-entity accounts reveal inconsistencies and negative equity, which are red flags for financial stability.

2. Key Concerns:

• Negative net assets of £16,812 as of 31 March 2024, indicating the company is balance sheet insolvent.
• Long-term creditors exceeding £37,000, which is a high liability relative to the scale of the company’s assets.
• Decline in total net assets from previous years, reflecting deteriorating financial health despite some improvement in current assets.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, reducing regulatory compliance risks.
• The single director and 100% shareholder control could facilitate swift decision-making and potential recapitalization.
• Increase in current assets in the latest year suggests some improvement in short-term liquidity.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors (e.g., loans, trade payables) to assess potential restructuring or repayment risks.
• Investigate why the creditors due within one year dropped to a nominal £400 in 2024 from prior years—potential reclassification or settlement?
• Confirm the cash flow position and working capital trends beyond balance sheet figures to assess operational liquidity.
• Understand the business model and revenue streams in freight transport by road to evaluate sustainability.
• Review director’s commentary or any related party transactions given sole control by one individual.