METTLE PROPERTIES MGT LTD

Executive Summary

METTLE PROPERTIES MGT LTD exhibits a high risk profile due to consistent negative net assets and liquidity shortfalls, compounded by reliance on director loans for funding. While regulatory compliance and active operations are positive signs, significant financial weaknesses undermine its solvency and cash flow stability. Further investigation into financing arrangements and operational viability is recommended before considering investment.

METTLE PROPERTIES MGT LTD - Analysis Report

Company Number: 13885295

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   Justification: The company has net liabilities and negative shareholders' funds over the last two reported years, indicating insolvency on a balance sheet basis. Negative current assets and net current liabilities suggest a liquidity shortfall with more immediate liabilities than assets. The presence of director loans as creditors indicates reliance on related-party financing to meet obligations, increasing risk.

2. Key Concerns:

• Solvency risk: Persistent negative net assets (£-6,131 in 2024, £-12,908 in 2023) show the company’s liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity constraints: Current liabilities (£6,954) exceed current assets including cash (£823 net current assets), indicating potential cash flow difficulties to cover short-term debts.
• Reliance on director loans: The company’s creditors include loans from directors (£6,455), implying external financing is insufficient and the business depends on directors’ financial support, which may not be sustainable.

3. Positive Indicators:

• No overdue filings: The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence and governance in that regard.
• Active website and operational status: The company has an active website and is registered as active, suggesting ongoing business activities.
• Directors with control: Two directors hold significant control and are actively engaged, which may bode well for operational continuity and decision making.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and repayment plans to assess potential future cash requirements or restructuring needs.
• Review underlying business model sustainability and cash flow forecasts since current financials show ongoing losses and negative net assets.
• Confirm if there are any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Clarify the negative debtor balances (£-3,596 in 2024) which may indicate accounting anomalies or provisions requiring explanation.
• Assess market position and prospects within the real estate sector, especially given the SIC codes relating to letting and property management.