Company Number: 13162698

Analysis Date: 2025-07-20 15:09 UTC

1. Credit Opinion: DECLINE
   MH Horses Ltd exhibits significant financial distress as evidenced by substantial and growing net liabilities over the last three years, worsening from -£21.7k in 2021 to -£179.2k in 2024. The company’s current liabilities greatly exceed current assets, leading to a negative working capital of -£257.3k in 2024. The limited equity and persistent losses indicate an inability to meet short-term obligations reliably. Without clear evidence of turnaround plans or capital injection, the credit risk is high.

2. Financial Strength:
   The company’s balance sheet shows persistent negative net assets and shareholders’ funds, reflecting accumulated losses. Fixed assets have increased modestly, but this is overshadowed by an escalating current liability position. The company remains a micro/small entity with minimal share capital (£1.00) and only one employee, which limits operational scale and capital reserves. The negative total assets less current liabilities (-£179.2k) confirms financial fragility.

3. Cash Flow Assessment:
   Cash at bank increased from £3.5k in 2023 to £13.2k in 2024, which is positive, but still insufficient to cover the very large current liabilities (£310.3k). The company’s liquidity position is weak with net current liabilities exceeding £257k, indicating an ongoing working capital deficit. Debtors are minimal and unlikely to provide meaningful relief. This cash flow profile suggests difficulty in servicing debts and meeting ongoing operational costs.

4. Monitoring Points:

• Monitor quarterly updates on cash flow and working capital improvements.
• Watch for any capital injections or restructuring efforts to reduce liabilities.
• Track changes in creditors and payment patterns to assess operational liquidity.
• Review management’s strategic plans for profitability and debt reduction.
• Keep an eye on director changes or any adverse regulatory actions.