MDO TECHNICAL SERVICES LTD

Executive Summary

MDO Technical Services Ltd is a newly formed small IT consultancy that ceased trading within its first financial year. Despite a positive cash position at the year-end, the lack of ongoing operations and trading history results in insufficient creditworthiness for lending. Continued monitoring of company status and future trading intentions is recommended before reconsidering credit facilities.

MDO TECHNICAL SERVICES LTD - Analysis Report

Company Number: 15565346

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: DECLINE
   MDO Technical Services Ltd is a newly incorporated private limited company with its first accounting period ending June 2025. The company ceased trading on 31 March 2025, indicating that it only operated for approximately one year and then stopped trading before the financial year end. Its net assets are modest (£11,654), and the business has no significant fixed assets or diversified operations. The cessation of trading within the first year raises concerns about ongoing viability and ability to generate revenue to service debt or credit facilities. Without evidence of active trading or a track record of profitability, the company does not demonstrate sufficient creditworthiness for new lending facilities at this time.

2. Financial Strength:
   The balance sheet shows current assets of £21,512, all held as cash, and current liabilities of £9,858, primarily tax and other creditors payable within one year. The net current assets stand at £11,654, which equals the net assets and shareholders’ funds, primarily consisting of retained earnings. There are no fixed assets recorded. The company’s capital base is minimal (£100 share capital), with accumulated profits of £11,554, likely reflecting initial contract revenues before ceasing operations. The absence of fixed assets and the short trading history limit financial strength. The clean balance sheet with more cash than liabilities is positive but insufficient to offset concerns over ceased trading.

3. Cash Flow Assessment:
   Cash of £21,512 at year-end with current liabilities of £9,858 indicates liquidity was adequate at the reporting date. However, the company ceased trading 3 months prior to the year-end, implying no ongoing cash inflows. Working capital is positive, but this is likely residual cash after operations stopped. The lack of ongoing trading cash flow and the cessation of business activities raise concerns about the company’s ability to meet future obligations or sustain operations without external capital injection.

4. Monitoring Points:

• Confirmation of any plans to restart trading or secure new contracts.
• Monitoring any subsequent filings for changes in company status (e.g., liquidation).
• Watch for updated accounts to detect any reversal of trading cessation or improved trading results.
• Review management actions regarding creditor settlements and tax liabilities.