MBHP PIPEWORK SERVICES LTD

Executive Summary

MBHP PIPEWORK SERVICES LTD, a micro-entity incorporated in 2023, currently faces financial stress evidenced by negative net assets and limited liquidity despite modest revenues and a small profit. While compliance with filing obligations is satisfactory, the company’s early stage and financial position warrant caution. Further due diligence on cost structure, cash flow, and business prospects is recommended to better understand operational viability and risk.

MBHP PIPEWORK SERVICES LTD - Analysis Report

Company Number: 14849001

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets and net liabilities shortly after incorporation, indicating potential solvency issues. The minimal current assets (£411) versus current liabilities (£463) suggest tight liquidity. The low turnover (£82,644) and negative net assets (–£52) within its first financial period are concerning for operational stability.

2. Key Concerns:

• Negative net current assets and shareholders’ funds, signaling the company’s liabilities exceed its short-term assets and equity.
• Very limited cash and working capital (£411 current assets), which may impair the company’s ability to meet immediate obligations.
• The business is newly incorporated (less than 2 years) with a single employee and minimal scale, raising questions about operational sustainability and growth prospects.

3. Positive Indicators:

• The company filed accounts and confirmation statements on time, demonstrating compliance with statutory filing requirements.
• A small profit (£3,198) was reported despite the challenging financial position, suggesting some initial operating capability.
• Full ownership and control by a single director/PSC may allow for agile decision-making and streamlined governance.

4. Due Diligence Notes:

• Investigate the nature of the "Other charges" (£65,424) that significantly impact profitability and understand their composition and recurrence.
• Review cash flow statements or bank records (if available) to assess liquidity beyond the balance sheet snapshot.
• Understand the business model, client base, and revenue pipeline to evaluate future sustainability and growth potential.
• Confirm whether there are any contingent liabilities or off-balance sheet exposures not disclosed.
• Verify the director’s experience and background to assess management capability in steering the company through early-stage challenges.