MIDAS BRICKS LTD

Executive Summary

MIDAS BRICKS LTD demonstrates significant financial distress characterized by negative net assets and severe liquidity issues. While the company maintains compliance with statutory filings and holds a substantial fixed asset base, its operational sustainability is questionable given the absence of employees and high current liabilities. Further investigation into asset realizability and business plans is essential to ascertain recovery potential.

MIDAS BRICKS LTD - Analysis Report

Company Number: 13108896

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks with net current liabilities exceeding £160,000 and negative net assets. The persistent negative equity and large current liabilities relative to minimal current assets indicate difficulty meeting short-term obligations.

2. Key Concerns:

• Liquidity Strain: Current assets (~£874) are negligible compared to current liabilities (~£163,723), resulting in a severely negative working capital position. This suggests cash flow constraints.
• Negative Net Assets: The company shows net liabilities of approximately £3,680, indicating insolvency on a balance sheet basis.
• No Employees/Operating Activity: The absence of employees and minimal current assets raise questions about operational sustainability and revenue generation.

3. Positive Indicators:

• Fixed Asset Base: The company holds substantial fixed assets valued at £300,000, which may provide collateral or an asset base for restructuring or financing.
• Compliance: The company is active, up to date with accounts and confirmation statement filings, and is not in liquidation or administration.

4. Due Diligence Notes:

• Verify the nature, valuation, and liquidity of the fixed assets to assess realizable value and potential to cover liabilities.
• Investigate the reasons for the large current liabilities and the company’s strategy or plan to address this imbalance.
• Determine revenue streams or contracts in place to evaluate future operational viability given zero employees reported.
• Confirm director and PSC (persons with significant control) background and any related party transactions given the financial stress.
• Assess any contingent liabilities or off-balance sheet exposures not reflected in current accounts.