MCVLS LTD

Executive Summary

MCVLS LTD demonstrates significant financial distress with negative net assets and sharply negative working capital, indicating poor liquidity and solvency. The company’s lack of operational scale and minimal asset base further weaken its ability to service debt. Credit facilities are not recommended until financial stability improves and liquidity constraints are addressed.

MCVLS LTD - Analysis Report

Company Number: SC744938

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: DECLINE
   MCVLS LTD’s financials show a significant deterioration in liquidity and working capital, with net current assets turning sharply negative to -£26,990 in 2024 from -£10,158 in 2023. The company’s net assets have also declined markedly to -£25,512, indicating the company is technically insolvent on a balance sheet basis. This weak financial position combined with no employees and limited fixed assets suggests minimal operational activity and limited ability to generate cash flow to service debt. The directors’ report does not indicate any mitigating factors or plans to restore financial health. Given these factors, extending credit would present a high risk of non-repayment.

2. Financial Strength:
   The balance sheet is severely weakened. Fixed assets are minimal (£1,478), and current liabilities have nearly doubled to £33,087 while current assets decreased to £6,097. The resulting negative net current assets and negative shareholders’ funds reflect a stressed financial position. The company’s micro-entity accounts prepared under FRS 105 show accumulated losses rather than equity, signaling ongoing financial distress. No equity injections or improvements are evident. Overall, the company lacks financial resilience and capital buffer.

3. Cash Flow Assessment:
   Cash flow appears constrained with current liabilities far exceeding current assets, implying potential liquidity issues. The absence of employees suggests limited business operations and little internal cash generation. Negative working capital means the company may struggle to meet short-term obligations without external financing or asset sales. No cash flow statements are provided; however, the balance sheet indicates cash or equivalents are insufficient to cover immediate debts, increasing credit risk.

4. Monitoring Points:

• Monitor quarterly or interim accounts for improvements in liquidity and net assets.
• Watch for director or shareholder equity injections to stabilize finances.
• Track current liabilities trends relative to current assets to assess liquidity management.
• Keep alert for any changes in business activity or operational scale, including hiring or asset acquisitions.
• Review any upcoming confirmation statements or filings for governance or ownership changes.