MCB PROJECTS LTD

Executive Summary

MCB PROJECTS LTD is currently in a fragile financial condition with a dramatic decline in liquidity and shareholder equity over the last year. Immediate action is necessary to stabilize cash flow, manage assets prudently, and rebuild capital to avoid insolvency risks. Careful financial oversight and strategic adjustments are critical for recovery.

MCB PROJECTS LTD - Analysis Report

Company Number: 13538810

Analysis Date: 2025-07-20 16:50 UTC

Financial Health Assessment for MCB PROJECTS LTD
Incorporated: 29 July 2021 | Industry: Buying and selling of own real estate (SIC 68100) | Private Limited Company

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1. Financial Health Score: D (Needs Attention)

Explanation:
The company shows significant signs of financial distress, with very low net assets and liquidity in the latest year compared to prior years. The current financial position reflects a fragile state, suggesting urgent attention is needed to stabilize the business’s finances.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	2,608	545,419	Drastic drop indicates liquidity crisis.
Current Liabilities	1,263	528,107	Sharp reduction, but still close to assets.
Net Current Assets (Working Capital)	1,345	18,532	Healthy working capital vanished.
Net Assets (Equity)	385	15,892	Almost wiped out shareholder funds.
Shareholders’ Funds	385	15,892	Equity cushion nearly depleted.
Director’s loan	2,145 (repaid after year-end)	N/A	Short-term borrowing from director, repaid.

• Liquidity (Current Ratio): ~2.06 (2,608/1,263) in 2024, which superficially looks healthy but based on very low absolute figures.
• Equity Position: Near zero equity indicates the company is barely solvent.
• Trend Analysis: From 2023 to 2024, current assets and net assets have plummeted by over 99%, a symptomatic sharp decline.

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3. Diagnosis:

MCB PROJECTS LTD's financial "vital signs" reveal symptoms of severe financial distress. The company’s liquidity has collapsed, reflected by a catastrophic drop in current assets and net assets. This suggests either significant asset disposals, write-downs, or losses during the last financial year. The equity base has almost entirely eroded, bringing the company dangerously close to insolvency.

The advance from the director during the year (repaid after year-end) indicates a short-term cash flow gap, symptomatic of poor internal cash generation or timing mismatches. The absence of employees and the micro-entity reporting regime suggest a very small or dormant operational footprint.

The company’s business in real estate trading typically requires substantial asset holdings; the sharp drop in assets is alarming and may reflect difficulty in maintaining property holdings or sales.

Overall, the company is in a fragile financial state, with symptoms pointing to liquidity strain and depleted equity. Without intervention, the risk of insolvency or a forced restructuring is high.

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4. Recommendations:

• Immediate Cash Flow Management:
  Carefully monitor and forecast cash flows to avoid liquidity shortfalls. Explore short-term financing lines or director loans if needed, but avoid dependency.

• Asset Review and Valuation:
  Conduct a thorough review of property holdings and receivables to identify any impaired assets or opportunities for sale to improve liquidity.

• Cost Control:
  Maintain minimal overheads and avoid new commitments until financial stability is restored.

• Equity Injection:
  Consider new capital injections or refinancing to rebuild shareholder funds and strengthen the balance sheet.

• Financial Reporting and Oversight:
  Prepare detailed management accounts monthly to monitor financial health closely and detect early warning signs.

• Strategic Review:
  Evaluate the business model and market conditions to determine viability and consider restructuring or pivoting if necessary.

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Medical Analogy Summary:

MCB PROJECTS LTD shows "symptoms of financial distress" akin to a patient with a sudden and severe drop in vital signs. The "healthy cash flow" seen previously has collapsed, leaving the company in a precarious "state of shock." Without urgent "treatment" — improved liquidity management, recapitalization, and cost control — the prognosis is poor, risking "organ failure" (insolvency).

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