MJS LANDSCAPING LTD

Executive Summary

MJS Landscaping Ltd is currently in a financially fragile state with negative equity and negative working capital, indicating limited capacity to service debt or absorb financial shocks. The company’s deterioration over the past year raises significant credit risk, and without clear signs of profitability or capital support, credit approval is not recommended. Close monitoring of liquidity and solvency metrics is essential if the company’s circumstances change.

MJS LANDSCAPING LTD - Analysis Report

Company Number: SC726807

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: DECLINE
   MJS Landscaping Ltd, a micro-entity operational since March 2022, currently exhibits a weak financial position. Its negative shareholders' funds of £2,665 as of March 2024 indicate insolvency on a net asset basis. Additionally, the company’s current liabilities (£33,932) exceed current assets (£12,293), resulting in a negative working capital position. The increase in creditors falling due after one year (£15,153) also raises concerns about medium-term debt servicing. Given these factors, the company’s ability to meet obligations promptly and service additional credit facilities is questionable. Without signs of profitability or improved liquidity, extending credit would carry elevated risk.

2. Financial Strength:
   The balance sheet shows fixed assets increased from £19,236 to £33,751, which may reflect investment in plant or equipment. However, the substantial rise in both current and long-term liabilities combined with a decline in net assets from £8,257 (2023) to negative £2,665 (2024) signals financial deterioration. The company’s micro status and limited scale (average 1 employee) suggest limited operational capacity. The negative equity position highlights potential insolvency risk, signaling poor financial resilience.

3. Cash Flow Assessment:
   Current assets (£12,293) are insufficient to cover short-term liabilities (£33,932), implying liquidity stress and potential cash flow difficulties. The company’s working capital deficit is a red flag for maintaining ongoing operations without external funding or owner support. No explicit cash flow statement is provided, but the balance sheet hints at strained cash conversion cycles or delayed receivables. The drop in current assets from £23,898 in 2023 to £12,293 in 2024 despite rising liabilities exacerbates concerns.

4. Monitoring Points:

• Track shareholders’ funds and net asset position each period for signs of recovery or further deterioration.
• Monitor current ratio and working capital trends to assess short-term liquidity improvements.
• Observe creditor aging and whether the company meets payment terms consistently.
• Review any new debt or capital injections that could improve the balance sheet.
• Watch for changes in turnover or profitability in future filings to gauge operational viability.
• Consider director’s conduct and any changes in management strategy impacting financial stewardship.