MJM DISTRIBUTION LTD

Executive Summary

MJM DISTRIBUTION LTD shows a concerning financial position with negative net assets and increased current liabilities, posing high solvency and liquidity risks. While regulatory compliance and stable ownership are positives, the lack of employees and worsening working capital require further investigation to assess operational sustainability. Caution is advised for investors until these issues are clarified.

MJM DISTRIBUTION LTD - Analysis Report

Company Number: 13945887

Analysis Date: 2025-07-20 12:32 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets and net current liabilities as at the latest financial year end, indicating solvency and liquidity challenges. The micro-entity financials show a worsening working capital position with no employees, which increases operational risk.

2. Key Concerns:

• Negative net assets of £4,765 and net current liabilities of £5,854 at 31 May 2024, reflecting insolvency risk.
• Current liabilities have increased sharply from £7 in the prior period to £10,205, suggesting possible short-term cash flow pressure.
• No employees reported, which could indicate limited operational capacity or business activity, raising sustainability questions.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing good governance in regulatory terms.
• The sole director and 100% owner, Mr John O’Brien, is actively involved and has been in position since incorporation, implying stable leadership continuity.
• The company operates in a growing sector (retail sale via mail order/internet), which may provide market opportunities.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant increase in current liabilities, including whether these are trade payables, loans, or other obligations.
• Clarify the company’s cash flow position and funding sources to assess its ability to meet short-term obligations.
• Understand the company’s business model and whether it has any ongoing contracts or sales to support future viability.
• Confirm the reason for having no employees and whether any outsourced operational capacity exists.
• Review related party transactions or director loans that might impact financial stability.