Company Number: 13936797

Analysis Date: 2025-07-29 19:24 UTC

1. Credit Opinion: DECLINE
   MAYPOLE LONG PRESTON LTD shows weak financial health with negative net current assets (£-9,034 in 2024) and net liabilities, indicating liquidity stress and a working capital deficit. Despite being operational and increasing employee count from 6 to 11, the company’s balance sheet deteriorated from a marginally positive position in 2023 to negative in 2024. The absence of fixed assets and reliance on current assets likely cash or receivables further stresses short-term repayment capacity. This company’s financial profile suggests a high risk of cash flow difficulties, making it unable to comfortably service new or existing credit facilities without external support or turnaround.

2. Financial Strength:
   The company is micro-sized but has declined in financial health over the reported period. Current liabilities exceed current assets by £9,034 as of 29 February 2024, reflecting a negative working capital position. Shareholders’ funds are negative, which means accumulated losses or liabilities are not covered by equity capital. The balance sheet lacks fixed assets, implying limited collateral value. The increase in employee numbers without a corresponding rise in net assets may indicate operating losses or inefficient capital deployment. Overall, the company’s solvency is questionable.

3. Cash Flow Assessment:
   Negative net current assets indicate potential liquidity constraints. The company’s ability to meet short-term obligations is compromised as current liabilities are greater than current assets. This raises concerns about the availability of cash or near-cash assets to fund day-to-day operations or service debt. The increase in liabilities from £42,321 to £43,651 alongside reduced current assets points to deteriorating cash flow management or rising short-term obligations. No data on cash flow from operations is available, but the working capital deficit is an adverse indicator.

4. Monitoring Points:

• Monitor upcoming accounts and cash flow statements for signs of improved liquidity or increased working capital.
• Track creditor turnover and payment patterns to assess operational cash flow health.
• Watch for changes in shareholder equity and whether capital injections occur to offset losses.
• Review management actions to improve profitability or reduce liabilities.
• Evaluate any new credit facilities or guarantees provided to the company.
• Keep an eye on market conditions impacting the hospitality sector (SIC 56302) as economic downturns can exacerbate financial stress.