Company Number: 13879553

Analysis Date: 2025-07-19 11:51 UTC

1. Risk Rating: MEDIUM
   Justification: Mastergrid Limited shows positive net current assets and increased shareholders' funds in 2024, indicating some financial improvement. However, its reliance on a parent company for financial support and a high level of amounts owed to group undertakings raise concerns about solvency and operational independence. The company is relatively new and small in scale, limiting historical financial data for a robust stability assessment.

2. Key Concerns:

• Dependence on Parent Company Support: The going concern statement explicitly notes reliance on the parent company (Ircamex SAS) for at least 12 months and foreseeable future, indicating potential vulnerability if this support ceases.
• High Group Company Creditors: Amounts owed to group undertakings have nearly doubled from £221k to £409k in one year, representing a substantial portion of current liabilities (£531k), suggesting liquidity pressure and possible funding through intercompany loans rather than operational cash flow.
• Limited Operational Track Record and Scale: Incorporated in 2022 with a small employee base (2 employees), the company’s limited operational history and small scale restrict assessment of sustainability and resilience under stress.

3. Positive Indicators:

• Improved Financial Position: Net current assets increased from £8.4k in 2023 to £48.2k in 2024, and retained earnings turned positive (£38.2k) after a prior deficit, indicating progress towards profitability and better working capital management.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, with filings up to date, reflecting good regulatory compliance and governance practices.
• Unqualified Auditor's Report: The latest accounts have an unqualified audit opinion, supporting the reliability of the reported financial information.

4. Due Diligence Notes:

• Verify the nature and terms of intercompany balances with the parent and group companies, including repayment schedules and interest charges, to understand liquidity and solvency implications.
• Review cash flow statements and operational revenues (not filed here but may be requested) to assess true operational cash generation capacity beyond balance sheet snapshots.
• Investigate any contingent liabilities or off-balance sheet arrangements that may impact financial stability.
• Confirm the ongoing commitment and financial strength of the parent company, Ircamex SAS, given the dependence declared in going concern notes.
• Assess the business model and market positioning in its SIC category (other business support services) to evaluate sustainability and growth prospects.