MK FIX LIMITED

Executive Summary

MK FIX LIMITED is financially distressed with negative net assets and minimal liquidity, indicating an inability to service debt or sustain operations without external support. The company’s micro-entity status and poor cash flow metrics present high credit risk. Without clear evidence of financial recovery or improved cash generation, credit facilities are not recommended.

MK FIX LIMITED - Analysis Report

Company Number: 14502231

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: DECLINE
   MK FIX LIMITED shows significant financial distress with negative net assets of £19,406 as of 30 November 2024, deteriorating from negative £24,474 the prior year. The company carries high long-term creditors (£19,500) relative to minimal current assets (£94) and negligible working capital. This weak financial position indicates an inability to meet obligations or service debt. The lack of turnover or profit figures and absence of cash reserves further detracts from creditworthiness. Given these factors and the company’s micro-entity status with limited operational scale, extending credit is high risk without substantial guarantees or improvements.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Current assets are minimal (£94), current liabilities are not explicitly stated but net current assets are positive by the same amount, suggesting very low short-term obligations. However, the company has significant creditors due after one year (£19,500), resulting in negative net assets and shareholders’ funds (-£19,406). The decline in net assets and negative equity signals erosion of capital, likely due to accumulated losses or unpaid liabilities. The company employs 3 staff but does not show asset investments or fixed assets. Overall, financial strength is weak with high leverage and no buffer.

3. Cash Flow Assessment:
   With current assets of only £94 (likely cash or equivalents) and ongoing long-term liabilities, liquidity is severely constrained. The company’s ability to generate cash from operations is unclear but presumably insufficient to cover creditors or operational expenses. Working capital is effectively negligible, raising concerns about the company’s day-to-day cash flow management. There is no indication of cash inflows from turnover or receivables. The negative equity position further suggests reliance on external funding or deferral of payments. Cash flow risk is high.

4. Monitoring Points:

• Track quarterly cash flow statements to detect liquidity strain
• Review turnover and profit figures when available to assess operational viability
• Monitor creditor aging to understand payment delays or defaults
• Watch for changes in director or PSC positions that may indicate ownership or governance shifts
• Observe any new filings or changes in account category that reflect business scale or financial improvement
• Assess any capital injections or restructuring efforts to stabilize finances