MIN & MICH LTD

Executive Summary

MIN & MICH LTD, a micro-entity retail company, exhibits significant solvency and liquidity concerns due to negative net current assets and equity over consecutive years. While statutory filings are current and governance appears maintained, the financial position suggests risk to operational sustainability absent further capital or profitability improvements. Detailed financial and operational due diligence is recommended prior to investment.

MIN & MICH LTD - Analysis Report

Company Number: 12905413

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets and net liabilities over multiple years, indicating a solvency concern. Despite a positive shareholders' funds figure reported as negative (likely a reporting or formatting inconsistency), the balance sheet clearly reflects liabilities exceeding assets by a significant margin.

2. Key Concerns:

• Solvency Risk: The balance sheet consistently shows net current liabilities (£9,186 in 2024) exceeding current assets, indicating potential difficulties meeting short-term obligations.
• Negative Net Assets: The reported net assets and shareholders funds are negative (£9,123 in 2024), which is a critical red flag for financial stability and may indicate accumulated losses or undercapitalization.
• Limited Operational Scale: Micro-entity classification with only 2 employees and very low fixed assets may suggest limited operational capacity and resilience to external shocks.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, demonstrating compliance with statutory requirements.
• Stable Employment Level: Employee count remains steady, indicating some operational continuity.
• Consistent Reporting: Accounts have been prepared under micro-entity provisions and signed by directors, showing governance adherence within the constraints of a small company.

4. Due Diligence Notes:

• Investigate the nature and cause of persistent negative net current assets and negative net equity; review detailed notes to accounts and any off-balance sheet liabilities.
• Confirm accuracy and interpretation of reported figures, as micro-entity accounts sometimes simplify disclosure.
• Review cash flow statements and creditor aging reports to assess liquidity pressures not visible in balance sheet snapshots.
• Examine trading performance and profitability trends since incorporation in 2020 to evaluate operational sustainability.
• Assess any contingent liabilities or related party transactions that could impact financial position.
• Verify background and financial standing of directors and ownership structure, noting absence of Persons with Significant Control data.