MCDANIELS PROPERTY SERVICES LTD

Executive Summary

MCDANIELS PROPERTY SERVICES LTD is a newly formed micro company operating in painting services with limited financial history. Its current balance sheet reveals weak equity and negative working capital, exposing liquidity risks. Credit approval is recommended only on a conditional basis with strict monitoring of cash flow and financial stability improvements.

MCDANIELS PROPERTY SERVICES LTD - Analysis Report

Company Number: 14554348

Analysis Date: 2025-07-20 11:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MCDANIELS PROPERTY SERVICES LTD is a very recently incorporated micro-entity (established late 2022) engaged in painting services. The company’s net assets have significantly declined from £3,678 at end of 2023 to only £383 at end of 2024, indicating erosion of equity. The company shows negative net current assets (working capital) of £24,128 in 2024, worsening from a negative £8,071 in 2023, which points to liquidity strain. However, no overdue filings or formal insolvency proceedings are noted, and the sole director holds full control with relevant industry experience. Given the early stage and current weak liquidity, credit should be extended conditionally with close monitoring and possibly limited to short-term or small credit lines until financial stability improves.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£24.5k) and current assets (£18.8k) versus current liabilities of £42.9k for 2024. The sharp increase in current liabilities relative to assets suggests reliance on short-term creditors or payables. Net assets are near zero (£383), indicating minimal equity buffer to absorb losses or shocks. The erosion of shareholders’ funds from £3,678 to £383 within a year signals declining financial resilience. No long-term debt or provisions are present, which reduces leverage risk but also reflects limited capitalization.

3. Cash Flow Assessment:
   The available cash data for 2023 shows £1,843 in cash, but 2024 cash details are not explicitly provided. Negative net current assets imply working capital deficits, which may pressure day-to-day liquidity and the ability to meet short-term obligations promptly. The company’s single employee and micro-entity status suggest low overheads, but cash flow management appears tight. Without a positive working capital position, the company may face challenges funding operations or growth without external support.

4. Monitoring Points:

• Monitor liquidity ratios and working capital trends closely, particularly current asset to liability coverage.
• Track timely payment of trade creditors and any emerging overdue payables.
• Review future filings for any material changes in net assets or cash flow.
• Assess any changes in director or ownership structure that could impact governance or financial strategy.
• Watch for evidence of business growth or contract wins that may improve revenue and cash inflow.