Company Number: 13116118

Analysis Date: 2025-07-20 15:30 UTC

1. Risk Rating: MEDIUM
   MG Autoz Limited shows positive net current assets and consistent filing compliance, indicating operational continuity and regulatory adherence. However, the decline in shareholders’ funds over recent years, low share capital, and increased current liabilities warrant caution regarding solvency and liquidity.

2. Key Concerns:

• Declining Shareholders’ Funds: From £23,072 in 2021 to £11,193 in 2024, indicating erosion of equity which could impact financial resilience.
• Increased Current Liabilities: Current liabilities nearly doubled from £11,034 in 2023 to £19,998 in 2024, potentially signaling pressure on short-term obligations.
• Dividend Payments Exceeding Profit Retention: The company paid dividends (£32,000) exceeding the reported profit for the year (£29,284), which may affect cash reserves.

3. Positive Indicators:

• Positive Net Current Assets: Consistently positive net current assets (£11,193 in 2024), indicating the company can cover short-term liabilities with current assets.
• Adequate Cash Position: Cash holdings increased to £21,813 in 2024, improving liquidity.
• Compliance Track Record: No overdue filings for accounts or confirmation statements, demonstrating good governance and regulatory compliance.
• Stable Management: Directors have been in place since incorporation with no negative conduct records noted.

4. Due Diligence Notes:

• Investigate nature and timing of dividend payments relative to cash flows to assess sustainability and impact on liquidity.
• Review debtor aging and collectability, especially given the material amount classified as “other debtors” (£9,000) which may affect working capital quality.
• Confirm the reasons behind the increase in current liabilities and assess if these are trade creditors, tax liabilities, or other obligations.
• Obtain management accounts or cash flow statements for recent periods for a more current view of liquidity and operational performance.
• Verify if any contingent liabilities or off-balance-sheet commitments exist that could affect solvency.
• Assess the absence of fixed assets at net book value in 2024 (fully depreciated) and implications for operational capacity or capital expenditure requirements.