MCA BUILDING LTD

Executive Summary

MCA BUILDING LTD currently exhibits significant financial fragility with minimal net assets and working capital, coupled with no employees and negligible profit reserves. While it complies with filing requirements and remains active, its liquidity position and operational sustainability raise high risk concerns. Further investigation into business activity and cash flow is recommended before considering investment.

MCA BUILDING LTD - Analysis Report

Company Number: 13028406

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH
   Justification: MCA BUILDING LTD shows extremely limited net assets (£100) and minimal working capital (£100) with current liabilities almost equal to cash balances. The absence of employees and very low cash reserves raise immediate concerns about operational sustainability and liquidity. The company has not generated retained earnings or profit reserves, indicating minimal or no profitability.

2. Key Concerns:

• Liquidity Risk: Cash on hand (£1,937) barely covers current liabilities (£1,837), leaving negligible buffer for operating expenses or unforeseen costs.
• Operational Stability: No employees reported and no profit reserves suggest that the company may not be actively trading or generating sustainable income.
• Financial Fragility: Net assets and shareholders' funds remain minimal and stagnant over multiple years, indicating very limited financial strength or growth.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are up to date and not overdue, demonstrating regulatory compliance and good governance practices.
• Active Status: The company is active and not in liquidation or administration, suggesting it has not yet encountered formal financial distress proceedings.
• Clear Ownership and Management: Single director and owner with full control may facilitate decisive management actions if needed.

4. Due Diligence Notes:

• Investigate the nature and volume of trading activity to confirm if the company is operationally active or dormant despite active status.
• Review detailed financial transactions or management accounts (if available) to assess cash flow dynamics beyond year-end snapshot.
• Confirm the absence of contingent liabilities or off-balance-sheet obligations that could exacerbate financial risks.
• Evaluate the director’s plans for business development or capital injection to improve solvency and operational capacity.