Company Number: 14071057

Analysis Date: 2025-07-29 15:41 UTC

1. Risk Rating: MEDIUM
   While MCRFIX LTD is currently active with no overdue filings and maintains positive net current assets, the very low absolute net asset base (£200 as of 2024) and a significant decrease in net assets from the prior year (£711 in 2023) indicate limited financial buffer. The micro-entity size and recent incorporation (2022) also contribute to inherent risks typical of small startups in construction-related finishing trades.

2. Key Concerns:

• Thin Capitalization: Net assets have decreased substantially to only £200, suggesting limited capacity to absorb financial shocks or support growth.
• Liquidity Position: Although current assets exceed current liabilities by £200, this margin is minimal and could be quickly eroded by unforeseen expenses or delayed receivables.
• Limited Financial History and Scale: With only two years of accounts and a very small scale operation (average 3 employees), the company may face operational risks related to business sustainability and market competition.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Ownership and Management Stability: Single director and 100% owner, Mr. Mojtaba Bagherian, appears stable with no adverse records, providing clear accountability.
• Growing Workforce: Increase from 2 to 3 employees suggests some modest growth or operational expansion.

4. Due Diligence Notes:

• Verify cash flow trends and creditor aging to assess short-term liquidity beyond balance sheet snapshots.
• Understand the nature of current liabilities and their terms to evaluate potential refinancing or settlement risks.
• Investigate the business plan or pipeline to determine sustainability and growth prospects in the competitive building finishing sector.
• Confirm there are no undisclosed contingent liabilities or off-balance sheet commitments.
• Review director’s background in more detail to ensure no undisclosed risks.