Company Number: 14849625

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: DECLINE
   MIKO GROUP LTD shows significant financial weakness despite being a very new company (incorporated May 2023). The company’s net current assets are deeply negative (£-409,703) indicating liquidity stress, and overall net liabilities stand at £127,659. The current liabilities vastly exceed current assets, highlighting an inability to meet short-term obligations from operational cash flow. The large balance of long-term creditors (£629,034) further strains financial stability. Without profitability data disclosed, and given the negative equity and working capital deficit, the risk of insolvency or default on credit obligations is elevated. Credit approval is not recommended at this stage.

2. Financial Strength:
   Balance sheet shows substantial tangible fixed assets (£984,049), mostly leasehold land and buildings (£600,000) and plant/equipment. However, these are offset by a large creditor base, both current and non-current, leading to net liabilities and negative shareholder funds. The company’s capital structure is weak, with no retained earnings and negative equity. This suggests that initial funding or asset acquisition was heavily debt-financed, and the company has not yet generated sufficient profits or cash inflows to strengthen equity. The absence of an audit and limited financial history heightens uncertainty.

3. Cash Flow Assessment:
   Cash on hand is low (£32,092) relative to creditors due within one year (£579,566), indicating poor liquidity and working capital management. Debtors (£137,771) form a significant portion of current assets but may not be readily convertible to cash depending on collection terms and debtor quality. The large working capital deficit signals reliance on external funding and potential difficulty in servicing short-term liabilities without additional capital injection or cash flow improvement. Overall, current cash flow appears insufficient for operational needs and creditor payments.

4. Monitoring Points:

• Track improvements in net current assets and liquidity ratios to assess working capital management.
• Monitor debtor aging and collectability to ensure cash inflows materialize as expected.
• Review any new or planned equity injections or refinancing to improve solvency.
• Assess profitability and cash generation once profit and loss data becomes available.
• Watch for any director changes or PSC shifts that might signal strategic adjustments or distress.