MELANO FOR MEN LTD

Executive Summary

Melano For Men Ltd exhibits weak financial health with sustained negative net assets and minimal liquidity, reflecting limited operational scale and undercapitalization. The company’s current financial profile and management background do not support extension of credit facilities at this time. Close monitoring of financial performance and capital structure is recommended before reconsidering credit approval.

MELANO FOR MEN LTD - Analysis Report

Company Number: 13805341

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: DECLINE
   Melano For Men Ltd is a micro private limited company incorporated in late 2021, engaged in retail sales via internet/mail order. The latest filed accounts show very limited financial activity with net current assets and net assets both negative at £(4,274), indicating the company is currently insolvent on a balance sheet basis. The consistent negative net asset position over the last two years, combined with zero employees and minimal liabilities, implies the business is undercapitalized and not generating sufficient profitability or cash flow. The sole director’s occupation as a van driver suggests limited managerial capacity or experience relevant to the business. Given these factors, the company lacks financial strength and resilience to service debt, posing a high credit risk.

2. Financial Strength:
   The balance sheet reveals total net liabilities of £4,274 as of 31 December 2023, worsening from £2,949 in prior years. There are no fixed assets or significant current assets reported, and the company operates with minimal working capital. Shareholders’ funds are negative, reflecting accumulated losses or undercapitalization. The absence of employees and immaterial financial scale indicate constrained operational capacity. Overall, the financial position is weak, with no tangible buffer against adverse conditions.

3. Cash Flow Assessment:
   Net current assets are negative and of a low absolute value, suggesting tight or negative working capital. The company’s micro-entity status means limited disclosure, but the figures imply very limited liquidity. There is no evidence of cash reserves or receivables that could support short-term obligations. The company likely depends on external funding or director loans to meet liabilities, which is not sustainable for credit extension.

4. Monitoring Points:

• Improvement in net assets and working capital position
• Evidence of positive operating cash flow or profitability in future accounts
• Director’s financial commitment or injection of capital
• Any changes in management or operational scale that may enhance creditworthiness
• Timely filing of future accounts and confirmation statements to ensure compliance