Company Number: NI685866

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: DECLINE
   MCALEER & MCGARRITY MECHANICAL LTD shows weak financial metrics with current liabilities significantly exceeding current assets, resulting in negative net current assets and negative net total assets as of September 2024. The company’s balance sheet reflects a net liability position of £1,178, which raises concerns about its ability to meet short-term obligations and service any credit facility. The very limited asset base and negative equity position suggest poor financial resilience and insufficient capital buffer for economic stress. Given the micro-entity status and minimal operating scale (one employee), the business lacks demonstrated financial strength or cash flow stability to support new credit.

2. Financial Strength:
   The company has no fixed assets and minimal current assets (£70), while current liabilities (£1,248) are substantial for its size, leading to a net current asset (liability) deficit of £1,178. Shareholder funds are negative, indicating an erosion of equity. Although the company’s turnover and profit figures are not disclosed, the balance sheet signals that it is operating at a loss or with significant working capital deficiencies. This weak financial position compromises the company’s ability to fund operations without external support or capital injections.

3. Cash Flow Assessment:
   The small level of current assets relative to current liabilities indicates liquidity challenges. The company’s working capital is negative, which implies insufficient short-term liquidity to cover operational expenses or creditor demands. Without cash reserves or trade debtors, daily cash flow is likely constrained, increasing the risk of payment delays or defaults. The company appears heavily reliant on external funding or shareholder support to meet ongoing cash requirements.

4. Monitoring Points:

• Monitor future filings for improvements in net current assets and shareholder funds.
• Track any capital injections or increase in current assets to improve liquidity.
• Observe turnover trends and profitability in subsequent accounts to assess operating viability.
• Watch for timely payment behavior and any overdue filings or creditor disputes.
• Review director statements or notes for indications of restructuring or financial support plans.