Company Number: 13103131

Analysis Date: 2025-07-20 12:24 UTC

1. Risk Rating: HIGH

Justification: MBA Scaffolding Ltd displays significant solvency and liquidity risks indicated by persistent net current liabilities, negative net assets, and reliance on director support to continue operations. The company’s financial position deteriorated notably in the latest financial year, with shareholders' funds declining from a positive £9,983 in 2023 to a negative £799 in 2024.

2. Key Concerns:

• Solvency Risk: The company’s liabilities exceed assets (net liabilities of £799), and shareholders’ funds turned negative in 2024, indicating erosion of capital and potential insolvency.
• Liquidity Issues: Current liabilities (£27,434) exceed current assets (£5,810) by a large margin, resulting in a net current liability of £21,624, which suggests difficulty meeting short-term obligations.
• Going Concern Reliance: The directors explicitly state that the company depends on ongoing support from a director to continue trading, highlighting operational vulnerability and weak financial independence.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements on time, indicating regulatory compliance concerning statutory filings.
• Tangible Fixed Assets: The company holds tangible fixed assets of £20,825, providing some asset base, although this is insufficient to offset liabilities.
• Stable Operational Base: With two employees including directors, the company maintains a small, steady workforce suited to its size and sector (scaffold erection).

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s ongoing financial support or guarantees that underpin the going concern assumption.
• Review detailed profit and loss information, which was not included in the accounts, to assess operational profitability and cash flow generation.
• Examine trade debtor collectability and creditor payment terms given the high current liabilities and relatively low cash reserves.
• Confirm no director disqualifications or legal proceedings that might impact company governance or reputation.
• Assess whether any contingent liabilities or off-balance sheet risks exist that could further impair financial stability.