Company Number: NI686790

Analysis Date: 2025-07-20 14:51 UTC

1. Credit Opinion: DECLINE

MD CONSULTING NW LTD shows very limited financial strength with net assets declining sharply from £1,834 in 2023 to just £34 in 2024. The company is a micro-entity with minimal resources and no employees currently, indicating very limited operational scale and capacity. The near breakeven net current assets (£34) suggest almost no working capital buffer to meet short-term obligations. Given these factors, the company’s ability to service new or existing credit facilities is very weak and carries high risk.

2. Financial Strength:

The balance sheet reports current assets of £6,431 and current liabilities of £6,397 for 2024, resulting in barely positive net current assets and total net assets of £34. This is a substantial decline from the prior year net assets of £1,834. The lack of fixed assets and negligible equity position implies fragile financial footing. The company’s micro classification limits the amount of financial information available, but the trend is negative with shrinking net assets and equity. The sole shareholder and director holds full control, which centralizes decision-making but also means limited external capital support.

3. Cash Flow Assessment:

The near parity of current assets and liabilities indicates extremely tight liquidity. The company likely has minimal cash reserves and limited ability to absorb unexpected expenses or cash flow disruptions. The absence of employees currently suggests low operating activity or potentially a dormant state in terms of operations, which may further restrict cash inflows. Without a clear source of recurring revenue or cash generation, the working capital position is precarious.

4. Monitoring Points:

• Track monthly cash flow and bank balances closely to identify liquidity stress.
• Monitor any changes in current liabilities, especially if they increase beyond current assets.
• Watch for filing of updated accounts and confirmation statements on time to assess ongoing financial health.
• Review any changes in ownership or director appointments for signs of restructuring.
• Evaluate any new contracts or revenue streams that could improve financial stability.