MARKETING ANALYSIS & CONSULTANCY LIMITED

Executive Summary

Marketing Analysis & Consultancy Limited shows a gradual recovery in net assets and improved equity but continues to struggle with negative working capital and liquidity pressures. Credit approval is feasible on a conditional basis with stringent monitoring of cash flow and operational efficiency. The company’s fixed assets offer some security, but short-term financial risks remain significant.

MARKETING ANALYSIS & CONSULTANCY LIMITED - Analysis Report

Company Number: 12908372

Analysis Date: 2025-07-29 20:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Marketing Analysis & Consultancy Limited demonstrates a modest recovery trend with increasing net assets and reduced current liabilities compared to the previous years. However, the company continues to exhibit significant working capital deficits, indicating liquidity stress. The ability to service short-term obligations is constrained by a negative net current asset position (£-395k in 2024), despite a positive net asset base (£188k). The directors have maintained filings on time, showing compliance and reasonable governance. Credit approval should be conditional on close monitoring of cash flow and further evidence of improved liquidity or external support.

2. Financial Strength:
   The company’s balance sheet shows a strong fixed asset base (£640k), primarily in plant and machinery, which provides some collateral value. Shareholders’ funds have improved substantially from a deficit in 2021 to £188k in 2024, reflecting accumulated retained earnings. However, current liabilities remain high (£532k), and current assets are relatively low (£137k), leading to a negative working capital position. Long-term liabilities are modest (£57k). Overall, the company’s solvency is improving but remains vulnerable without stronger liquidity.

3. Cash Flow Assessment:
   Cash on hand is limited (£21.5k), and although trade debtors have increased (£86k), they are insufficient to cover current liabilities. The negative net current assets indicate potential difficulties in meeting short-term debts without additional financing or asset liquidation. The presence of director loans (£41k) suggests some internal funding support. The company should be encouraged to enhance cash conversion cycles and reduce reliance on short-term credit.

4. Monitoring Points:

• Liquidity ratios and net current assets to detect further improvement or deterioration.
• Timely collection of trade debtors and reduction of trade creditors.
• Any new or increased bank or director loans to cover shortfalls.
• Profitability trends and retained earnings growth in future accounts.
• Director changes or any indications of financial restructuring.