MCBC ENGR. LTD

Executive Summary

MCBC ENGR. LTD, a micro-entity software and online retail business, currently faces high financial risk due to negative net assets and substantial long-term liabilities exceeding its assets. While statutory compliance is maintained, the company's limited operational scale and solvency concerns warrant close scrutiny of creditor arrangements and cash flow sustainability. Further due diligence is recommended to evaluate turnaround potential and ongoing viability.

MCBC ENGR. LTD - Analysis Report

Company Number: 13002563

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with negative net assets (£-7,320) and a large amount of long-term creditors (£9,555) exceeding current assets. Despite no overdue filings, the balance sheet indicates financial distress.

2. Key Concerns:

• Negative net assets and overall net liabilities indicate the company’s liabilities exceed its assets, posing solvency concerns.
• Long-term creditors of £9,555 greatly surpass current assets (£3,293), suggesting potential liquidity issues and difficulty in meeting obligations when due.
• Very limited scale and operational data: only one employee and no fixed assets, indicating a minimal operational base which may challenge sustainability.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statement) with no overdue submissions or compliance issues.
• Shareholder control is clear and concentrated with a single individual holding over 75% ownership and directorship, potentially allowing decisive governance.
• The business operates in technology/software development and online retail sectors, which can offer scalability opportunities if financial constraints are addressed.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules and any restructuring agreements.
• Examine cash flow statements (not provided) for insight into operational cash generation and short-term liquidity management.
• Review any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Assess the current business model and revenue generation capacity given the micro-entity status and minimal staffing.
• Clarify the director’s plans or strategies to remediate the negative equity position.