MAYBOLE DEVELOPMENTS LTD

Executive Summary

Maybole Developments Ltd is currently facing significant financial challenges, characterized by negative working capital and net liabilities, which pose risks to its operational continuity. Immediate action to improve liquidity and recapitalise the business is essential to stabilise its financial condition and avoid potential insolvency. The company should seek professional guidance to implement an effective turnaround strategy.

MAYBOLE DEVELOPMENTS LTD - Analysis Report

Company Number: SC684245

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment: Maybole Developments Ltd
Date of assessment: Based on accounts to 31 December 2023

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1. Financial Health Score: D

Explanation:
Maybole Developments Ltd shows clear signs of financial distress as of the latest accounts. The company has moved from a marginally positive net asset position in 2022 (£12) to a net liability position of £891 in 2023. The working capital (net current assets) has deteriorated drastically from a small positive balance to a significant negative figure (£-50,411), indicating liquidity problems. This score reflects a company struggling to maintain financial stability and requiring urgent remedial action.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	50,000	Stable long-term investment
Current Assets	587	Very low liquid resources
Current Liabilities	50,998	Very high short-term debts
Net Current Assets (Working Capital)	-50,411	Severe liquidity strain; unable to cover short-term obligations
Net Assets (Total Equity)	-891	Negative equity indicating financial stress
Share Capital	10	Minimal capital base

Interpretation:

• Healthy cash flow appears absent given the very low current assets relative to current liabilities.
• The negative working capital is a strong symptom of financial distress, signaling the company may struggle to meet immediate obligations.
• The negative net assets indicate the company’s liabilities exceed its assets, a critical warning sign.
• Fixed assets remain unchanged, which suggests no recent investment or asset disposals.
• Minimal share capital points to limited financial buffer.

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3. Diagnosis

Maybole Developments Ltd is exhibiting symptoms akin to a patient with compromised vital signs: the liquidity crisis (negative working capital) represents an acute symptom, while the negative net asset position suggests chronic financial weakness. The company’s inability to cover its short-term liabilities with current assets reflects a cash flow problem that could impede ongoing operations.

Despite being a micro entity with minimal filing requirements, the financial data signals that the business is under stress. The historical stability in fixed assets suggests no recent asset sales to alleviate financial strain, and the lack of employee costs (average employees NIL) might indicate a very lean operation or inactivity.

The financial health deterioration between 2022 and 2023 could be attributed to increased short-term debts or delayed payments from debtors. Directors’ loans and dividends paid in previous years show some financial movements but do not appear sufficient to offset liabilities.

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4. Recommendations

• Improve Liquidity: The company must urgently address its working capital deficit. This could involve negotiating longer payment terms with creditors, accelerating receivables collection, or securing short-term financing to cover immediate liabilities.
• Review Debt Structure: Investigate the nature of the £50,998 current liabilities. If some debts can be reclassified as long-term or refinanced, this could ease short-term pressure.
• Capital Injection: Consider raising additional equity or director loans to restore positive net assets and improve solvency.
• Cost Control: Maintain tight control on expenses, especially if operations are minimal, to prevent further cash drain.
• Strategic Review: Evaluate business model viability and potential for revenue generation to restore financial health.
• Compliance and Monitoring: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain transparency.
• Professional Advice: Engage with financial advisors or turnaround specialists to develop a detailed recovery plan.

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Medical Analogy Summary

Maybole Developments Ltd shows symptoms of financial distress akin to a patient with low blood pressure and dehydration—its liquidity is dangerously low, and its financial reserves are insufficient to sustain operations. Without prompt intervention (liquidity support and restructuring), the prognosis is guarded, with risks of insolvency if conditions do not improve.

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