MATTONI LIMITED

Executive Summary

Mattoni Limited is a newly incorporated building development company with a weak balance sheet, negative net assets, and tight liquidity. The company is currently supported by significant director loans, indicating insider confidence but reliance on ongoing financial support. Conditional credit approval is recommended, with close monitoring of cash flow, stock valuation, and director funding to ensure continued financial stability.

MATTONI LIMITED - Analysis Report

Company Number: 14554296

Analysis Date: 2025-07-20 12:22 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Mattoni Limited is a very young private limited company incorporated in late 2022 and currently active in building project development (SIC 41100). The company has reported a net current liability position and negative shareholders' funds as of 31 December 2023, indicating a weak balance sheet. However, the negative net assets position is primarily driven by director loans recorded as creditors, which are interest-free and repayable on demand, showing director support. The company has no employees and minimal cash but holds significant stock in development properties. The directors have confirmed going concern status based on their financial support commitment. Credit should be extended cautiously, subject to monitoring liquidity improvement and equity strengthening.

2. Financial Strength:
   The balance sheet shows current assets of £839,830 largely comprising stocks (£800,344) and cash of £39,486, against current liabilities of £845,479. The net current assets are negative at £-5,649, with shareholders’ funds also negative at £-5,655. The significant current liabilities include £842,079 in director loans, which reduces liquidity pressure but represents a contingent liability if directors withdraw support. The company has no fixed assets and no reported retained earnings (losses). Being in development property, stock valuation depends on successful sales at or above cost; impairment risk exists if market conditions deteriorate. Overall, financial strength is weak but supported by director funding.

3. Cash Flow Assessment:
   Cash resources are very limited (£39,486) relative to current liabilities, implying tight liquidity. The company has no employees, so operating cash outflows may be limited, but the business model requires working capital to fund property development. Director loans provide a buffer but are repayable on demand, which could strain liquidity if requested. No detailed cash flow statement is available, but given negative working capital, the company must rely on director support or timely sales of development properties to maintain operations. Cash flow risk is elevated; credit facilities should consider this carefully.

4. Monitoring Points:

• Track quarterly or biannual cash flow and liquidity positions to detect any worsening of net current liabilities.
• Monitor stock valuation and any impairments or write-downs on development properties as these directly impact asset quality.
• Review director loan balances and any changes in terms or repayment demands.
• Watch for timely filing of accounts and confirmation statements, as compliance reflects management capability.
• Monitor any new financing or equity injections to improve the fragile capital structure.
• Keep an eye on sales progress of development projects and resultant cash inflows.