MERCURY CONVEYOR SYSTEMS LTD

Executive Summary

Mercury Conveyor Systems Ltd exhibits signs of financial weakening with declining net assets and a negative working capital position as of the latest financial year. The company’s micro size and limited financial disclosures restrict insight into cash flow generation, raising concerns about its ability to service debt and meet short-term obligations. Given these factors, credit facilities should be declined at this stage pending significant improvement in financial health and liquidity.

MERCURY CONVEYOR SYSTEMS LTD - Analysis Report

Company Number: 13746708

Analysis Date: 2025-07-29 18:04 UTC

1. Credit Opinion: DECLINE. Mercury Conveyor Systems Ltd is a very young micro-entity with a very limited asset base and current liabilities slightly exceeding current assets as of the latest financial year. The company’s net current liabilities position in 2023 indicates a working capital deficit, raising concerns on its ability to meet short-term obligations. Additionally, the sharp decline in net assets and shareholders’ funds from £13,151 in 2022 to £2,714 in 2023 signals a weakening financial position. Given the lack of profitability details and absence of an audit, there is insufficient evidence to support the company’s capacity to service new or increased credit facilities reliably.

2. Financial Strength: The balance sheet shows minimal fixed assets (£2,843 in 2023) and a recent deterioration in net current assets from a positive £9,522 in 2022 to a negative £129 in 2023. Total assets less current liabilities dropped significantly from £13,151 to £2,714, reflecting a depletion of equity and potential losses or increased liabilities. The company’s small scale and micro-entity status limit financial disclosure, but the downward trend in net assets and working capital is a negative indicator of financial strength.

3. Cash Flow Assessment: Current liabilities (£138,161) slightly exceed current assets (£138,032), resulting in a negative net working capital position. This raises liquidity concerns, suggesting the company may face challenges in meeting short-term commitments without additional financing or improved cash collections. The very small asset base and no reported cash or cash equivalents figure further highlight potential cash flow constraints. The company’s ability to generate positive operational cash flow is not evidenced, increasing risk from a credit perspective.

4. Monitoring Points:

• Watch for improvement in net current assets and liquidity ratios in future accounts filings.
• Monitor timely submission of accounts and confirmation statements to ensure compliance.
• Track changes in shareholder funds and profitability once profit & loss details become available.
• Review any changes in director appointments or PSC control that might signal governance or operational shifts.
• Monitor trade payment behavior and any creditor pressure indicating stress.