MILLSTREAM PARTNERS LTD

Executive Summary

Millstream Partners Ltd’s financial position has weakened over the last year, with net liabilities replacing previous modest net assets and a sharp reduction in current assets. While the company maintains positive working capital, liquidity is constrained, and equity erosion poses a risk to creditworthiness. Credit approval is conditional, requiring close monitoring of cash flow improvements and management actions to restore financial stability.

MILLSTREAM PARTNERS LTD - Analysis Report

Company Number: 12936608

Analysis Date: 2025-07-20 11:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Millstream Partners Ltd shows signs of financial stress, with net liabilities of £456 at the latest year-end, a decline from net assets of £103 the prior year. Although it remains an active private limited company in the management consultancy sector, the negative equity position and shrinking current assets indicate weakening financial health. The company’s ability to service debt is uncertain without further liquidity or capital injection. Approval is conditional on monitoring liquidity improvement and management’s plans to restore positive net worth.

2. Financial Strength:
   The balance sheet reveals a deterioration in net assets from £103 in 2023 to a deficit of £456 in 2024. Fixed assets are minimal and declining (£853 to £627), and current assets have sharply dropped from £4,115 to £809, while current liabilities have also decreased but not proportionally (£3,365 to £342). Accruals and deferred income remain significant at £1,550. Shareholders’ funds are negative, indicating erosion of equity, likely due to losses or significant expenses. The company qualifies as a micro-entity, and its small size limits financial buffer capacity.

3. Cash Flow Assessment:
   Net current assets remain positive at £467, suggesting some short-term liquidity; however, the significant drop in current assets (mainly cash or receivables) raises concerns about working capital adequacy. The company repaid a director loan of £4,065 in full during the year, which improves creditor position but may have strained cash resources. Overall, liquidity appears tight, and the company’s ability to meet short-term obligations depends on ongoing cash generation or external funding.

4. Monitoring Points:

• Track changes in net current assets and cash balances in subsequent filings.
• Monitor accruals and deferred income levels for impact on liquidity.
• Watch for any director advances or loans that may affect working capital.
• Review profitability trends or losses that could drive further equity erosion.
• Assess management’s strategy for financial recovery and capital strengthening.