MDBAS CF LIMITED

Executive Summary

MDBAS CF LIMITED is a micro-entity with a minimal but positive net asset and working capital position, reflecting a fragile but currently stable financial footing. Given its small scale and limited financial history, credit should be extended cautiously with close monitoring of liquidity and operational performance. Conditional approval is recommended for low-risk facilities supported by shareholder backing.

MDBAS CF LIMITED - Analysis Report

Company Number: 14850121

Analysis Date: 2025-07-29 16:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MDBAS CF LIMITED is a very small micro-entity with limited financial history since incorporation in May 2023. The company shows modest positive net assets and working capital, indicating minimal but positive liquidity. However, the absolute financial scale is very limited, and the company’s ability to service significant debt or withstand adverse conditions is constrained. The absence of an audit and limited financial disclosures reduce transparency. Approval for credit should be conditional on low facility amounts, short tenor, and close monitoring of financial performance and cash flows.

2. Financial Strength:
   The company’s balance sheet shows net assets of £3,645 as of June 2025, up from £1,911 in September 2024. Current assets increased to £65,272, primarily cash or equivalents, against current liabilities of £61,727, yielding a small positive net current asset position of £3,545. This demonstrates a very tight working capital position with little buffer. The company holds no significant fixed assets, and shareholders’ funds reflect only initial capital and retained earnings. Overall, the financial position is fragile but stable given the micro-entity status.

3. Cash Flow Assessment:
   Working capital is positive but marginal, implying limited liquidity headroom. The increase in current assets suggests some improvement in cash or receivables, but current liabilities remain high relative to net assets. Given the single employee and minimal operational scale, cash outflows are likely low, but the company may rely on shareholder support or related entities (notably the significant control held by Holly Tree Investments Limited and Mdbas Limited) for ongoing liquidity. Cash flow management must be closely overseen.

4. Monitoring Points:

• Maintain regular updates on liquidity and working capital ratios to detect any strain early.
• Monitor any changes in related party transactions or shareholder funding given the controlling interests.
• Track turnover and profitability as reported in future accounts to assess operational viability.
• Ensure timely filing of annual accounts and confirmation statements to avoid compliance risk.
• Watch for any director or governance changes that could impact company stability.