MCL PROPERTY SERVICES LTD

Executive Summary

MCL Property Services Ltd is a newly formed private limited company operating in real estate letting, with significant investment property assets but currently negative net and working capital positions. The company carries secured debt and related party balances that present liquidity and solvency risks despite compliance with filing requirements. Further due diligence is recommended to evaluate asset quality, loan terms, and business sustainability before considering investment.

MCL PROPERTY SERVICES LTD - Analysis Report

Company Number: 15023023

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: HIGH

Justification: The company shows negative net current assets (£-44,518) and negative net assets (£-313) despite holding investment property valued at £122,542. It has significant secured bank loans (£78,337) due after more than one year and current liabilities (£46,186) that exceed its current assets, indicating potential solvency and liquidity concerns. The company is newly incorporated (2023) with only one reporting period, limiting historical data for trend analysis.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by a substantial margin, raising liquidity risk.
• High Leverage: Bank loans secured against assets exceed the net asset value, potentially constraining financial flexibility.
• Related Party Debt: Significant interest-free, repayable-on-demand balance (£44,850) owed to a related company may indicate reliance on intra-group funding with uncertain recoverability.

3. Positive Indicators:

• Investment Property Asset: The company holds a tangible fixed asset valued at £122,542, providing some asset backing.
• Compliance: No overdue filings; accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Sole Director and PSC Alignment: The sole director is also the person with significant control, simplifying governance and decision-making.

4. Due Diligence Notes:

• Verify the valuation and marketability of the investment property to assess collateral quality.
• Investigate the terms and repayment schedule of the bank loan(s), including covenants and security arrangements.
• Review the nature and sustainability of related party balances and potential impact on cash flows.
• Assess business plan viability given negative working capital and limited operational history.
• Confirm absence of director disqualifications or other governance red flags.