MCJ PROJECT SOLUTIONS LTD.

Executive Summary

MCJ Project Solutions Ltd is a micro-entity in its first financial year showing negative net assets and working capital, indicating weak financial strength and liquidity challenges. The company is not currently in a position to reliably service debt or credit obligations. Without evidence of improved cash flows or profitability, credit exposure carries significant risk. Monitoring future financial performance and liquidity will be critical before reconsidering credit terms.

MCJ PROJECT SOLUTIONS LTD. - Analysis Report

Company Number: 15052736

Analysis Date: 2025-07-29 20:04 UTC

1. Credit Opinion: DECLINE
   MCJ Project Solutions Ltd is a newly incorporated micro-entity with only one financial year completed. The company shows net liabilities of £1,067 and net current liabilities of £1,468, indicating a weak balance sheet and poor short-term liquidity. Negative net assets and working capital suggest the company is not currently solvent and may struggle to meet debt obligations. There is no evidence of profitability or retained earnings, and the company employs only one person, limiting operational scale and resilience. Without a demonstrated positive financial trajectory or cash flow, extending credit poses a high risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£901) and current assets (£1,332) that are outweighed by current liabilities (£2,800) and accruals/deferred income (£500). The resulting net liabilities position reflects that liabilities exceed assets, compromising financial strength. Shareholders’ funds are negative, driven by accumulated losses or initial start-up costs. The company’s micro classification and limited operating history make it difficult to assess long-term viability. The single director and sole shareholder control all voting rights, concentrating decision-making but also risk.

3. Cash Flow Assessment:
   The negative net current assets position indicates a working capital deficit, meaning the company does not have sufficient short-term assets to cover immediate liabilities. This suggests potential liquidity issues, with a risk that suppliers or creditors may not be paid on time. The accounts do not provide detailed cash flow statements, but the balance sheet implies limited cash buffers and potentially strained cash flow from operations. The company will need additional funding or improved revenue generation to stabilize liquidity.

4. Monitoring Points:

• Future filings: Monitor subsequent annual accounts to detect any improvement in profitability, asset base, and working capital.
• Cash flow statements: Review detailed cash flow data when available to assess operational cash generation.
• Director activity: Watch for any changes in management or significant capital injections from the shareholder.
• Payment behavior: Track credit payment history and any overdue liabilities or defaults reported.
• Business development: Assess contracts or client base growth given the management consultancy nature of the business.