MF PROPERTIES LIMITED

Executive Summary

MF PROPERTIES LIMITED shows significant financial weakness characterized by negative equity, poor liquidity, and high leverage, which raises concerns over its ability to meet debt obligations. Despite some asset growth, the company’s working capital deficit and ongoing losses warrant a decline of credit facilities at this stage. Close monitoring of financial improvements and cash flow development is essential before reconsidering credit support.

MF PROPERTIES LIMITED - Analysis Report

Company Number: SC756509

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: DECLINE
   MF PROPERTIES LIMITED exhibits a weak financial position with persistent negative shareholders' funds (£-48,145 in 2025) and substantial creditor obligations, including significant long-term liabilities of £317,622 against minimal current assets. The company’s inability to build positive equity over three reported years and the heavy gearing indicate elevated credit risk. Despite being a micro-entity, the negative net asset position and poor liquidity undermine confidence in its ability to service debt or meet commercial commitments reliably.

2. Financial Strength:
   The balance sheet shows fixed assets increasing from £212k to £422k between 2024 and 2025, suggesting some asset growth, likely property-related given the industry. However, the net asset deficit worsened from £-6,763 in 2023 to £-48,145 in 2025, reflecting accumulated losses or negative reserves. Current assets remain negligible (£2.5k in 2025) versus current liabilities (£155.8k), indicating poor working capital. Creditors due after one year doubled to £317.6k, increasing leverage and financial strain.

3. Cash Flow Assessment:
   Liquidity is critically constrained. The company holds minimal cash or equivalents and nominal receivables relative to short-term obligations. Negative working capital (current assets £2.5k vs. current liabilities £155.8k) points to potential cash flow difficulties for meeting immediate liabilities. The absence of employees and limited current assets raise concerns about operational cash generation. There is no indication of positive cash flow from operations or external financing to cover deficits.

4. Monitoring Points:

• Track changes in net current assets and overall net assets to assess if equity position improves.
• Monitor creditor payment terms and any defaults or restructuring negotiations.
• Review any new funding or capital injections from the sole controlling director.
• Watch for filing of more detailed financials or cash flow statements to clarify operational cash generation.
• Observe market conditions in the property management and real estate sectors impacting asset values and rental income.