MATTHEW DEAS TRADING LTD

Executive Summary

Matthew Deas Trading Ltd is a micro-entity with consistent negative net worth and working capital deficits, indicating weak financial health and limited ability to service debt. The company’s lack of operational scale and negative liquidity position present significant credit risk. Approval of credit facilities is not recommended without substantial improvement in financial performance and capital structure.

MATTHEW DEAS TRADING LTD - Analysis Report

Company Number: 14751638

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE
   Matthew Deas Trading Ltd shows persistent net liabilities and negative shareholders’ funds over its two years of operation, with no improvement trend. The company is a micro-entity under retail mail order/internet sales but lacks employees and shows no positive net current assets, indicating weak liquidity and repayment capacity. The director is the sole controller, but there is no evidence of financial resilience or operational scale. Given the ongoing negative net worth and working capital deficits, the company’s capacity to service debt or meet commercial obligations is highly questionable.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £7,383 at the latest year-end (31 March 2025), worsening from £5,401 the prior year. Total net assets and shareholders’ funds are negative at £7,383, signaling erosion of capital and reliance on external funding or director support. Current liabilities exceed current assets consistently, demonstrating a weak financial structure. No fixed assets or long-term investments are reported, limiting asset backing for credit.

3. Cash Flow Assessment:
   The company’s current assets are minimal (£11,865), primarily cash or receivables, but current liabilities of £19,438 outweigh these, leading to negative working capital. No employees or operational scale suggests limited cash generation ability. The absence of audit and reliance on micro-entity reporting reduces transparency on cash flows. The negative liquidity position raises concerns about meeting short-term creditors and operating expenses without additional funding.

4. Monitoring Points:

• Improvement in net current assets and elimination of negative net worth
• Increase in turnover and operational scale to support cash flow generation
• Changes in director or ownership that might impact governance and financial stewardship
• Timely filing of accounts and confirmation statements as a compliance indicator
• Any external funding or capital injections to restore financial strength