METAC CONSTRUCTION LTD

Executive Summary

METAC CONSTRUCTION LTD shows significant financial stress with escalating net liabilities and poor liquidity evident from persistent negative working capital. While the company complies with filing requirements and maintains operational headcount, the lack of detailed financial disclosures and worsening balance sheet position suggest a high risk from a solvency and liquidity perspective. Further detailed financial and operational due diligence is necessary to clarify the causes and sustainability of its financial position.

METAC CONSTRUCTION LTD - Analysis Report

Company Number: 12888192

Analysis Date: 2025-07-29 19:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant and increasing negative net assets and net current liabilities over recent years, indicating deteriorating financial health and potential solvency concerns.

2. Key Concerns:

• Persistent and growing net liabilities: Net assets have declined from a positive £1,610 in 2021 to negative £36,272 in 2024, reflecting accumulated losses or funding deficits.
• Negative working capital: Current liabilities substantially exceed current assets (£36,747 vs. £475 in 2024), creating liquidity risks and an inability to meet short-term obligations.
• Micro entity with limited financial disclosures: The company files under micro-entity provisions, providing minimal financial information and no profit and loss statement, restricting transparent assessment of operational performance and profitability.

3. Positive Indicators:

• Timely filing compliance: The company is up to date with accounts and confirmation statement filings, suggesting adherence to statutory requirements and no immediate regulatory compliance issues.
• Stable employee count: Consistent average employee number (5 employees) over recent years may indicate operational continuity.
• No indication of insolvency proceedings: The company remains active with no liquidation, administration, or receivership status reported.

4. Due Diligence Notes:

• Investigate the nature and causes of the mounting liabilities and negative net assets to understand if these are temporary cash flow issues or structural losses.
• Review cash flow forecasts, bank facilities, and creditor arrangements to assess liquidity management and the risk of default on short-term obligations.
• Obtain management commentary or detailed financial statements beyond micro-entity filings to evaluate operational profitability, revenue trends, and cost control.
• Confirm the presence and effectiveness of any related-party transactions or director loans that may impact solvency.
• Assess any contingent liabilities or off-balance sheet obligations not visible from current accounts.