METIS BRAY LTD

Executive Summary

Metis Bray Ltd has experienced a rapid decline in financial health within two years of incorporation, moving to a negative net asset and working capital position. The company's liquidity is severely compromised, raising concerns over its ability to meet obligations and sustain operations. Credit facilities are not advisable until there is evidence of financial stabilization and improved cash flow management.

METIS BRAY LTD - Analysis Report

Company Number: 14250186

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: DECLINE
   Metis Bray Ltd's latest financials show a significant deterioration in liquidity and net asset position. The company moved from a positive net current assets and shareholders' funds position of £15,322 in 2023 to a negative shareholders' funds of £-10,648 in 2024. Current liabilities of £25,625 now exceed current assets of £1,903 by a wide margin, resulting in a negative working capital of £-23,722. This indicates a material risk that the company may be unable to meet short-term obligations, raising concerns about its ability to service debt or credit facilities. Given the financial deterioration within a year of incorporation and absence of employees, credit approval is not recommended at this stage.

2. Financial Strength:
   Balance sheet strength has materially weakened. Fixed assets have increased modestly from £7,836 to £13,074, but this is overshadowed by the sharp decline in current assets and increase in current liabilities. The negative net asset position indicates that liabilities exceed assets, a critical red flag for financial stability. No retained earnings or equity buffer is evident, implying that losses or creditor claims have eroded net worth. The company’s micro-entity status limits available disclosures but the provided figures show poor capitalization and weak solvency.

3. Cash Flow Assessment:
   The large negative net current assets suggest significant liquidity constraints. The company’s current liabilities are over 13 times the level of current assets, indicating severe working capital deficiency. This points to a potential cash flow crisis and inability to cover short-term debts. The absence of employees could imply a low-cost structure, but without sufficient liquid resources or positive cash flow indicators, operational continuity is at risk. No cash flow statements are provided, but the balance sheet alone signals acute liquidity stress.

4. Monitoring Points:

• Monthly monitoring of cash balances and creditor payments
• Changes in current liabilities and management of short-term debt
• Any new capital injections or shareholder funding to restore net asset position
• Timely filing of accounts and confirmation statements to maintain compliance
• Director and management actions to improve liquidity and profitability
• Potential risks of insolvency or administration if negative trends persist