MASUK LIMITED
Company number 13529325 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: MASUK LIMITED
1. Credit Opinion: DECLINE
Reasoning: MASUK LIMITED is balance sheet insolvent with net liabilities of £82,239 as at 31 July 2025, deteriorating from £57,838 in the prior year. The company is entirely dependent on the director's continued financial support to remain a going concern, as explicitly stated in the filed accounts. Current assets have halved year-on-year (from £64,798 to £30,696), while creditors remain substantial at £112,935. The financial trajectory is firmly negative, and there is no evidence of sufficient cash generation to service additional debt obligations. Extending credit in these circumstances represents an unacceptable risk.
2. Financial Strength
Balance Sheet Position – Critically Weak
| Metric | 2025 | 2024 | Movement |
|---|---|---|---|
| Current Assets | £30,696 | £64,798 | -52.6% |
| Creditors (<1 year) | £112,935 | £122,636 | -7.9% |
| Net Current Liabilities | (£82,239) | (£57,838) | Worsened by £24,401 |
| Net Liabilities | (£82,239) | (£57,838) | Worsened by £24,401 |
The company has no fixed assets and negative working capital of £82,239. It is technically insolvent – liabilities exceed assets by a significant margin. The deterioration of £24,401 in net liabilities over the year indicates ongoing trading losses eroding the capital position.
There is no equity cushion to absorb further losses or unexpected shocks. The director's undertakings to support the company represent an unsecured commitment with no disclosed limit or timeframe, which provides limited comfort for creditors.
3. Cash Flow Assessment
Liquidity – Severely Constrained
- Current ratio: 0.27x (£30,696 / £112,935) – far below the 1.0x threshold for adequate short-term coverage
- Working capital deficit: £82,239 – the company cannot meet its current liabilities from current assets
- Cash generation: Unknown – micro-entity accounts provide no profit & loss or cash flow statement, but the erosion in net assets implies operating losses
The company is reliant on creditor forbearance and director support to meet day-to-day obligations. Any disruption to trade creditor terms or withdrawal of director funding would likely trigger an immediate liquidity crisis.
Trade creditor exposure remains substantial at £112,935 for a micro-entity retailer, suggesting the business is effectively funding operations through supplier credit rather than generated cash flow.
4. Monitoring Points
If any facility is considered (which would require exceptional mitigants), the following require ongoing scrutiny:
- Director support letter: Obtain and review any formal commitment from Mr Stead – assess his personal financial capacity to provide ongoing funding
- Quarterly management accounts: Require submission to monitor trading performance and cash flow – the filed accounts provide negligible visibility
- Working capital trend: Track current assets and creditor levels quarterly; any further decline in current assets below £25,000 would signal imminent distress
- Filing compliance: Accounts are currently up to date, but monitor for any delays which could indicate administrative difficulties
- Sector risk: Cosmetics retail is exposed to discretionary consumer spending – monitor for economic downturn impacts on revenue
- Creditor payment behaviour: Obtain trade references to assess whether the company is stretching supplier terms
- Director conduct: Check for any disqualification proceedings or adverse findings – currently clear