Company Number: 12392556

Analysis Date: 2025-07-20 15:08 UTC

1. Credit Opinion: DECLINE
   Miller & Lockyer Construction Ltd exhibits significant financial distress with persistent and deepening net liabilities over the last four years. The latest accounts show net liabilities of £228k and worsening working capital deficits, indicating an inability to meet short-term obligations. The company’s operating history since 2020 shows a rapid deterioration in financial health, with no indication of profitability or positive cash flow. The directors themselves acknowledge the intention to wind up the company, signaling severe business viability concerns. Given this, the company is not currently a creditworthy candidate for new lending or credit facilities.

2. Financial Strength:
   The balance sheet is weak with net assets declining from a positive £12.6k in 2020 to negative £228k in 2024. Fixed assets have been fully depreciated to zero by 2024, removing any collateral value. Current liabilities have grown substantially to £224.5k, vastly exceeding current assets of only £1.8k, resulting in a negative net working capital of £222.7k. The equity position is deeply negative, reflecting accumulated losses and erosion of shareholder funds. The absence of retained earnings and negative reserves further undermine financial stability.

3. Cash Flow Assessment:
   Cash holdings are minimal at £3, virtually eliminating liquidity buffers. Debtors have collapsed to £1.8k from over £30k the prior year, which might indicate reduced sales or collection issues. Current liabilities are dominated by large tax and social security liabilities (£103.8k) and other creditors (£105.4k), suggesting overdue payments and possible creditor pressure. The company’s negative working capital and lack of cash imply severe cash flow constraints, raising high risk of payment defaults.

4. Monitoring Points:

• Track liquidity improvements and any cash injections or refinancing to cover current liabilities.
• Monitor debtor collections and turnover trends to assess operational recovery.
• Watch for any restructuring or formal insolvency proceedings given the directors’ stated plans.
• Review updates on related party loans and intercompany transactions for potential funding support or risks.
• Keep an eye on tax and social security creditor balances, as these often trigger enforcement actions.