MAYFAIR TELECOM INVESTMENTS LTD

Executive Summary

Mayfair Telecom Investments Ltd exhibits significant liquidity and solvency concerns due to a large negative working capital position and declining net assets, despite a strong fixed asset base. The company remains compliant with filings and governance but appears reliant on director financing and external creditors. Further scrutiny of financial arrangements and operational sustainability is recommended before investment consideration.

MAYFAIR TELECOM INVESTMENTS LTD - Analysis Report

Company Number: 13515768

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: HIGH
   The company demonstrates significant liquidity risk and questionable solvency. Despite positive net assets, it has very large current liabilities compared to minimal current assets and cash, resulting in a substantial negative working capital position for the last three years.

2. Key Concerns:

• Severe Negative Net Current Assets: Current liabilities (~£249k) vastly exceed current assets (~£1.6k) and cash (£1), indicating inability to meet short-term obligations from liquid resources.
• Declining Net Assets and Shareholders’ Funds: Net assets have fallen from £98k (2023) to £53k (2024) while shareholders' funds remain at £195k, suggesting accumulated losses (P&L reserve negative and worsening).
• Reliance on Director’s Loan and Other Creditors: Large director’s loan account (£107k) and other creditors (£118k) form the majority of liabilities, raising concerns about external financing sustainability and potential related-party risk.

3. Positive Indicators:

• Significant Fixed Assets and Investment: Tangible fixed assets (~£300k) and investments (£300k) provide a solid asset base, which may support longer-term solvency if realizable.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance in terms of reporting.
• Stable Management and Control Structure: Single active director with clear PSCs and no reported director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account and other creditors, including repayment schedules and associated risks.
• Assess the realizability and valuation basis of the fixed assets and investments to understand potential liquidity in distress scenarios.
• Review the company’s cash flow forecasts and business model viability given the persistent negative working capital and absence of employees.
• Confirm whether the company is dependent on continual financing from directors or related parties to remain operational.
• Examine the absence of profit and loss account filings and implications on transparency and financial health.