MK DRILLING SERVICES LIMITED

Executive Summary

MK Drilling Services Limited demonstrates a low risk profile based on available micro-entity financial data, positive net current assets, and compliance with statutory filings. However, the decline in current assets and absence of employees in the latest year warrant further inquiry to confirm operational stability and cash flow adequacy. Additional financial disclosure would aid in a more comprehensive risk assessment.

MK DRILLING SERVICES LIMITED - Analysis Report

Company Number: NI678494

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: LOW

Justification: MK Drilling Services Limited is a micro-entity with small-scale operations and modest financial figures. The company shows positive net current assets and shareholders' funds, with no overdue filings or indications of insolvency. The consistent increase in shareholders' funds from £9,997 in 2023 to £12,676 in 2024 suggests modest financial improvement. There are no governance or regulatory compliance issues evident in the data provided.

2. Key Concerns:

• Decline in Current Assets: Current assets have decreased from £30,886 in 2023 to £19,223 in 2024, which could indicate reduced liquidity or working capital.
• Employee Reduction: The company employed 4 persons in 2023 but none in 2024, potentially signaling operational changes or downsizing that may affect business sustainability.
• Limited Financial Disclosure: As a micro-entity, the company benefits from reduced disclosure requirements and has not provided profit and loss details, limiting the ability to assess profitability and cash flow dynamics fully.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains net current assets of £12,676 in 2024, indicating it can cover short-term liabilities.
• Shareholders’ Funds Growth: An increase in shareholders’ funds from £9,997 to £12,676 shows retained earnings or capital injection, supporting solvency.
• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue reports or penalties.
• Active Website and Contact: The company maintains an active website with contact details, supporting operational transparency.

4. Due Diligence Notes:

• Investigate reasons for the reduction in current assets and employee headcount between 2023 and 2024 to understand operational stability.
• Request management accounts or additional financial details to assess profitability, cash flow, and sustainability beyond balance sheet snapshots.
• Confirm the nature and timing of any capital contributions or retained profits contributing to growth in shareholders’ funds.
• Verify that no contingent liabilities or off-balance-sheet obligations exist that could impact liquidity or solvency.
• Review industry conditions in the test drilling and boring sector to understand external risks affecting the company.