MIG EXPRESS LTD

Executive Summary

MIG EXPRESS LTD is financially fragile with minimal net assets and working capital, presenting high credit risk. The company’s declining asset base and near-zero equity indicate limited capacity to service debt or absorb shocks. Without significant financial improvement, credit facilities should be declined at this time.

MIG EXPRESS LTD - Analysis Report

Company Number: 13750975

Analysis Date: 2025-07-29 21:07 UTC

1. Credit Opinion: DECLINE
   MIG EXPRESS LTD shows a very weak financial position with net assets of just £1 as of the latest accounts (2024). The company has minimal working capital and negligible equity, indicating an inability to withstand financial stress or support additional borrowing. The current assets barely cover current liabilities, signaling liquidity constraints. Without significant improvement in financial strength or positive cash flow generation, extending credit poses a high risk of default.

2. Financial Strength:
   The balance sheet reveals a substantial decline in fixed assets from £4,102 in 2023 to zero in 2024, with current assets dropping from £11,068 to £6,862. Current liabilities have improved (reduced) from £14,819 to £6,861 but still nearly equal current assets, resulting in a net current asset of just £1. The shareholders’ funds dropped sharply from £351 to £1, showing erosion of capital. Overall, the company lacks adequate asset backing and equity cushion, reflecting poor financial health for credit purposes.

3. Cash Flow Assessment:
   With only one employee and minimal net current assets, the company’s liquidity is extremely tight. The near equivalence of current assets to current liabilities indicates very limited working capital to fund ongoing operations or unexpected expenses. No fixed assets remain to leverage for financing. The absence of an audit and micro-entity status suggest small scale operations with limited cash flow visibility. There is a material risk that short-term obligations cannot be met reliably.

4. Monitoring Points:

• Monitor future filings to detect any improvement in liquidity and net assets.
• Watch for increases in current asset balances relative to current liabilities.
• Track any changes in fixed assets or capital injections.
• Review director’s reports for operational updates or restructuring plans.
• Observe payment behavior to suppliers and creditors for signs of distress.