MARACLO LTD

Executive Summary

Maraclo Ltd shows clear signs of financial distress with negative net assets and increasing liabilities outpacing assets. While regulatory compliance is maintained and the company remains active, its minimal cash and reliance on creditor support raise significant solvency and liquidity concerns. Further analysis of creditor arrangements and business fundamentals is essential before considering investment.

MARACLO LTD - Analysis Report

Company Number: SC688892

Analysis Date: 2025-07-29 21:03 UTC

1. Risk Rating: HIGH
   Maraclo Ltd exhibits significant solvency and liquidity risks due to persistent negative net current assets and shareholders' funds. The company’s liabilities substantially exceed its assets, and this deficit has grown materially over the last two years, which points to financial distress.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company reported net current liabilities of £8,813 and negative shareholders' funds of £8,913 as of 29 February 2024, deteriorating from prior years, indicating ongoing losses or accumulated deficits.
• Low Cash Resources: Cash at bank is negligible (£25) relative to current liabilities (£13,288), raising immediate liquidity concerns for meeting short-term obligations.
• Dependence on Creditor Support: The directors explicitly state reliance on continued financial support from creditors to sustain going concern status, which is a risk factor if such support is withdrawn.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statement filings are up to date with no overdue penalties, indicating compliance with regulatory requirements.
• Active Status and Recent Incorporation: Being active and incorporated in 2021 suggests the company is relatively new and may still be in an early growth or investment phase.
• Clear Director Information: The sole director is identified with no adverse records mentioned, which supports governance transparency.

4. Due Diligence Notes:

• Investigate Creditor Composition and Support: Detailed review of the nature of the £13,159 “other creditors” and terms of financial support is critical to assess sustainability.
• Examine Profit & Loss Trends: Although not filed publicly (income statement exempted), understanding revenue generation, gross margins, and expense drivers will clarify operational viability.
• Evaluate Business Model and Market Position: Given the SIC code (47910) for retail via mail order and internet, assess competitive positioning, customer base, and growth prospects.
• Confirm Director’s Plan for Financial Recovery: Review any forecasts or restructuring plans that underpin the going concern assumption made by the director.