Company Number: 13624701

Analysis Date: 2025-07-20 11:05 UTC

1. Credit Opinion: DECLINE
   MEGA FX.COM LTD. exhibits significant financial stress as per the latest accounts to 30 September 2023. The company moved from a positive net asset position of £10,305 in 2022 to a net liability of £6,386 in 2023, indicating deterioration in financial stability. The presence of £10,241 of long-term creditors compared with very minimal current assets (£21) raises concerns about its ability to meet short-term obligations. Additionally, the shrinking fixed assets and negative net current assets suggest liquidity constraints and possible challenges in operational cash flow. The lack of audit and micro-entity reporting limits transparency, but the available data signals high credit risk and insufficient financial resilience to support new or extended credit facilities.

2. Financial Strength:
   The balance sheet reveals a substantial decline in net assets from £10,305 in 2022 to a net liability position of £6,386 in 2023, driven primarily by an increase in long-term liabilities of £10,241. Fixed assets also decreased to £12,950 from £18,500 the prior year, and current assets have nearly depleted to £21 from £921. Net current assets swung from a positive £8,195 to a negative £9,095. This weak capital structure and erosion of equity undermine financial strength and suggest potential solvency issues.

3. Cash Flow Assessment:
   Current assets of only £21 against current liabilities of £9,116 indicate severe short-term liquidity constraints. Negative net current assets imply the company does not have adequate working capital to cover immediate debts. This situation raises doubts about the company’s ability to generate sufficient cash inflows or access liquidity to meet obligations as they fall due without refinancing or capital injection.

4. Monitoring Points:

• Monitor the company's cash flow statements and working capital trends closely in subsequent filings.
• Watch for any restructuring or refinancing activity to address the long-term creditor balance.
• Review any director or shareholder funding injections or guarantees that might support liquidity.
• Track operational performance indicators and client retention to assess prospects for revenue recovery.
• Observe any changes in accounting policies or disclosures in future accounts that could impact reported financial health.