MARCHFORD LIMITED

Executive Summary

Marchford Limited’s financial position has deteriorated from modest net assets to a net liability state within one year, primarily driven by negative working capital indicating liquidity stress. While statutory compliance is maintained and management appears stable, significant solvency and cash flow risks raise concerns about ongoing operational viability. Further due diligence on profitability, cash management, and creditor arrangements is essential before considering investment or credit exposure.

MARCHFORD LIMITED - Analysis Report

Company Number: 14460681

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position over the last financial year, with net liabilities of £16,903 as of 30 November 2024, compared to net assets of £1,366 the prior year. Negative net current assets of £27,102 indicate immediate liquidity concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Solvency Issues: The transition from positive net assets to net liabilities within a year is a red flag, implying the company’s liabilities now exceed its assets, raising doubts about long-term viability.
• Liquidity Pressure: Current liabilities exceed current assets by a substantial margin, indicating potential cash flow constraints and difficulties in servicing short-term debts.
• Operational Sustainability: The company’s financials suggest ongoing losses or cash burn, with no indication of profitability or cash inflows sufficient to reverse the net liability position. The micro-entity status limits transparency, and absence of a profit and loss account filed restricts further insight.

3. Positive Indicators:

• No Overdue Filings: The company is current on both accounts and confirmation statement filings, demonstrating compliance with statutory requirements.
• Stable Management and Ownership: Directors and significant controllers appear consistent since incorporation with no reported disqualifications or governance issues.
• Niche Service Offering: The company operates in specialist limited company closure services, potentially maintaining demand in a defined market.

4. Due Diligence Notes:

• Profit and Loss Analysis: Seek detailed management accounts or internal reports to understand the drivers behind the negative net assets and whether losses are operational or due to extraordinary expenses.
• Cash Flow Projections: Review short-term cash flow forecasts to assess the company’s ability to meet liabilities and avoid insolvency risks.
• Creditor Terms and Debt Structure: Investigate the nature and terms of current liabilities to determine urgency of repayments and potential for restructuring.
• Business Model Viability: Evaluate client base, contracts, and market position to confirm ongoing revenue streams and operational sustainability.
• Director and PSC Background Checks: Although no disqualifications are evident, a prudent review of director conduct records is advised given the financial position.