MARSKE RIGGING & LIFTING LIMITED

Executive Summary

Marske Rigging & Lifting Limited is currently experiencing financial distress marked by negative net assets and working capital deficits, indicating liquidity challenges and potential solvency risks. Immediate focus on improving cash flow, managing costs, and possibly restructuring liabilities is essential to restore financial health and ensure the company’s sustainability.

MARSKE RIGGING & LIFTING LIMITED - Analysis Report

Company Number: 13643677

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment for MARSKE RIGGING & LIFTING LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress in its latest fiscal year. A negative net asset position (shareholders' deficit) and negative working capital ("net current liabilities") are key warning signs, indicating the company is technically insolvent on a balance sheet basis. While previous years were healthier, the recent decline suggests liquidity challenges and increased financial risk.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£12,400	Stable, consistent investment in long-term assets.
Current Assets	£94	Critically low; almost no liquid resources available.
Current Liabilities	£12,342	High short-term obligations, exceeding current assets.
Net Current Assets (Working Capital)	-£501	Negative working capital indicates cash flow problems.
Creditors Due After One Year	£12,342	Long-term liabilities stable but substantial relative to assets.
Net Assets (Shareholders’ Funds)	-£443	Negative net worth signals that liabilities exceed assets.
Number of Employees	1	Small operation, likely owner-managed, limiting scale.

• Working Capital: The "vital sign" of healthy cash flow is weak here. The company’s current liabilities surpass its current assets, meaning it may struggle to pay short-term debts as they fall due.
• Net Assets: A negative figure is a symptom of financial distress, often indicating accumulated losses or increased liabilities.
• Fixed Assets: Remain constant, showing no recent impairment or disposals, but their value is small relative to liabilities.

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3. Diagnosis

Marske Rigging & Lifting Limited is currently exhibiting symptoms of financial strain:

• The transition from positive shareholders' funds (£789 in 2023) to a deficit (-£443 in 2024) is concerning. This suggests losses or increased liabilities have eroded equity.
• Negative working capital signals immediate liquidity issues, meaning the company may not have enough readily available cash or assets to cover short-term debts.
• The company’s size (micro-entity with 1 employee) and industry (engineering activities) mean it likely relies heavily on project cash flows and timely collections.
• The stable fixed asset base suggests no asset write-downs, but also limited capital investment.
• The director is the sole significant controller, which could mean decisions are centralized but may lack broader governance support.

Overall, the company is in a financially precarious position, with risks to solvency if current trends continue. The "symptoms" suggest cash flow difficulty and possible over-reliance on creditor financing.

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4. Recommendations

To restore financial wellness and build resilience, the company should consider the following:

• Improve Liquidity:

  • Increase current assets by accelerating receivables collection or injecting cash.
  • Negotiate extended payment terms with creditors to ease short-term pressure.
  • Consider short-term financing options cautiously to bridge liquidity gaps.

• Cost Management:

  • Review and reduce non-essential expenses to preserve cash.
  • Evaluate staffing and overhead costs given the small team size.

• Profitability Enhancement:

  • Focus on securing projects or contracts with positive cash flow.
  • Reassess pricing strategies and cost structures.

• Capital Structure:

  • Explore equity injection from the director or new investors to improve net asset position.
  • If feasible, restructure existing liabilities to reduce immediate repayment burdens.

• Governance and Planning:

  • Implement a rolling cash flow forecast to monitor "vital signs" regularly.
  • Seek professional financial advice to develop a turnaround plan.
  • Maintain compliance with filing deadlines to avoid penalties that could worsen financial strain.

• Contingency Planning:

  • Prepare for potential insolvency risks; early action can prevent forced liquidation.

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