MCA (UK) LIMITED

Risk Rating: HIGH Justification: The company exhibits critically thin capitalisation, with net assets of only £1,773 supporting total assets of £174,270. Furthermore, the most recent financial year ending 31 March 2025 shows a shift into negative working capital (current liabilities exceed current assets by £3,838), indicating immediate liquidity stress. Severe volatility in equity over recent years further elevates the risk profile.

Key Concerns: - Negative Working Capital and Liquidity Stress: For the year ending 31 March 2025, current liabilities (£170,905) exceed current assets (£167,067), resulting in net current liabilities of £3,838. This indicates the company does not have sufficient short-term assets to cover its short-term debts, raising solvency concerns if creditors demand payment. - Extreme Leverage and Thin Capitalisation: The company is almost entirely debt-financed. With net assets of just £1,773 against total liabilities of £170,905, the margin for absorbing any operational losses or asset write-downs is virtually non-existent. A minor depreciation in asset values would render the company technically insolvent. - Extreme Balance Sheet Volatility: Net assets swung dramatically from £1,535 in 2022 to £120,929 in 2023, before crashing back down to £1,624 in 2024. Such severe fluctuations in equity within a micro-entity suggest highly speculative trading, potential capital restructuring, or significant related-party transactions that strip out profitability on an annual basis.

Positive Indicators: - Regulatory Compliance: The company is fully up to date with its statutory filing requirements. Accounts for the year ending 31 March 2025 were filed on time, and the confirmation statement is current, suggesting the director is maintaining basic administrative compliance. - Active Trading Status: The company has maintained an active status since its incorporation in 2012 and continues to hold a substantial asset base (£174,270), suggesting it maintains operational activity rather than being a dormant shell. - Long-term Debt Reduction: Long-term creditors (amounts falling due after more than one year) decreased significantly from £10,976 in 2024 to £1,592 in 2025, suggesting the company is successfully managing down its longer-term obligations.

Due Diligence Notes: - Composition of Current Assets: Given the SIC codes (sale of new cars and wholesale trade), current assets likely consist of motor vehicle stock or trade debtors. An investigator must determine the liquidity and realizability of these assets. If they consist of depreciating inventory, the true liquidation value may be lower than the book value, exacerbating the negative working capital. - Related Party and Creditor Analysis: It is critical to understand who the creditors are. With zero employees and a single listed director, it is highly probable that the £170,905 in current liabilities includes director loans or loans from the other Person with Significant Control (Mr Can Irigul). If liabilities are to related parties, they may be subordinated or not called in, mitigating the immediate insolvency risk. - PSC vs. Director Discrepancy: Mr Can Irigul holds 50-75% of the shares but is not listed as a current director. The relationship between the sole director (Mr Levent Agsakal) and the majority shareholder should be clarified to understand control and operational dynamics. - Operational Model: The company reports 0 employees across the last two financial years. Further investigation is required to understand how a company generating substantial wholesale/car sales volumes operates without staff (e.g., is it acting as an intermediary, or are owner-managers drawing income via dividends rather than PAYE?).