MAYAN ROOFING SYSTEMS LTD

Executive Summary

Mayan Roofing Systems Ltd is currently facing financial challenges, demonstrated by negative net assets and increased liabilities that signal distress. While working capital remains positive, the decline in cash and rising debts suggest liquidity pressures. Prompt action to improve cash flow, restructure debt, and potentially raise equity is essential for stabilizing and restoring financial health.

MAYAN ROOFING SYSTEMS LTD - Analysis Report

Company Number: 12700460

Analysis Date: 2025-07-29 20:06 UTC

Financial Health Assessment of Mayan Roofing Systems Ltd (as of 30 June 2024)

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1. Financial Health Score: D

Explanation:
Mayan Roofing Systems Ltd exhibits several concerning financial symptoms, including negative net assets and shareholders' funds deterioration over the last year. While the company maintains a reasonable current asset base and some working capital, the substantial long-term liabilities and erosion of equity indicate financial distress. The score reflects a need for urgent financial management and structural adjustments to avoid further decline.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	23,278	30,724	Slight decrease, possibly due to depreciation or asset disposals.
Current Assets	143,412	114,630	Healthy increase, driven by higher debtors and stock, indicating increased operational activity.
Cash	18,117	29,904	Significant decrease in cash reserves, a symptom of liquidity strain.
Debtors	82,640	44,051	Large increase, potential risk if collection periods are extended or bad debts rise.
Current Liabilities	86,978	35,124	Nearly 2.5x increase, indicating growing short-term obligations; stress on working capital.
Net Current Assets (Working Capital)	56,434	79,506	Positive but shrinking; working capital remains healthy but deteriorating.
Long-Term Liabilities	124,403	94,120	Increased significantly due to new loans, indicating higher financial leverage and risk.
Net Assets / Shareholders’ Funds	-44,691	16,110	Turned negative, a serious symptom of financial distress and declining equity cushion.
Share Capital	4,000	4,000	Minimal and unchanged, typical for small private company.

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3. Diagnosis: Financial Condition Overview

Mayan Roofing Systems Ltd is currently experiencing "symptoms of financial distress," reflected by a sharp deterioration in net assets and shareholders' funds from positive (£16,110 in 2023) to negative (£-44,691 in 2024). This indicates that liabilities exceed assets, akin to a patient with vital organ failure—here, the "organ" is the company's equity base which cushions against losses and risk.

Despite an increase in current assets and working capital, the company faces:

• Liquidity strain: Cash has dropped significantly (£18,117 from £29,904), which could impair the ability to meet immediate obligations.
• Growing debts: Both current and long-term liabilities have increased markedly, raising the risk of over-leverage and potential solvency issues.
• Debtor concentration: Debtors nearly doubled, suggesting extended credit terms or collection issues, which could exacerbate liquidity problems.

The company's operational activity appears robust (increased stock and debtors), but the financial structure is weakening, putting it at risk of insolvency if trends continue unchecked.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve cash flow management: Accelerate debtor collections, review credit policies, and optimize stock levels to release cash trapped in operations.
• Renegotiate debt terms: Engage lenders to restructure long-term loans, possibly extending maturities or reducing interest rates to ease liquidity pressure.
• Enhance profitability: Conduct a thorough cost analysis to identify areas for margin improvement, including pricing strategies and operational efficiencies.
• Equity injection: Consider raising additional equity capital to restore positive net assets and provide a buffer against financial shocks.
• Regular financial monitoring: Implement a monthly financial review process focusing on key indicators such as cash flow forecasts, debtor aging, and working capital.
• Director oversight: With recent director changes, ensure strong governance and financial oversight to steer the company through this recovery phase.

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Medical Analogy Summary

Mayan Roofing Systems Ltd shows "symptoms of distress" with a weakening financial "heartbeat" — negative net assets and depleted cash reserves. Although the "lungs" of working capital are still functioning, the "heart" of solvency is weakening, requiring immediate intervention to avoid "cardiac arrest" (insolvency).

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