MKC2022 LIMITED

Executive Summary

MKC2022 LIMITED is a newly formed micro-entity engaged in real estate letting, currently showing positive liquidity but minimal equity and significant long-term liabilities. While short-term financial position appears sound, the company's ability to generate stable cash flow and strengthen its financial base requires close monitoring. Conditional credit approval is recommended with emphasis on future trading performance and liability management.

MKC2022 LIMITED - Analysis Report

Company Number: 14486720

Analysis Date: 2025-07-20 19:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MKC2022 LIMITED is a recently incorporated micro-entity operating in real estate letting. The company shows a positive net asset position but with a very thin equity base (£3,479) and significant long-term liabilities (£138,123). Given the company's early stage and small scale, it currently has no employees besides the directors and minimal financial history. Approval can be considered on a conditional basis, subject to monitoring cash flow stability and further financial development to ensure it can meet debt obligations.

2. Financial Strength:
   The company’s balance sheet shows total current assets of £142,481 mainly cash or receivables, with current liabilities of only £879, yielding a strong net current asset position of £141,602. However, long-term liabilities of £138,123 heavily offset this, leaving net assets of just £3,479. This indicates the company is financed largely by debt or lease obligations related to its real estate operations. The equity base is minimal, suggesting limited financial buffer to absorb losses or economic shocks.

3. Cash Flow Assessment:
   The large current asset base relative to current liabilities implies good short-term liquidity and working capital. However, as a micro-entity with no employees and limited trading history, actual cash flow generation is unproven. The company’s ability to generate ongoing rental income or operate profitably remains uncertain. Monitoring incoming cash flow from operations and ability to service long-term liabilities is essential.

4. Monitoring Points:

• Track development of trading activity and rental income to confirm sustainable cash flow.
• Monitor any increase or reduction in long-term liabilities and related servicing costs.
• Watch equity growth or erosion to assess financial resilience.
• Observe director and management changes, particularly given the recent appointment of a second director.
• Ensure timely filing of accounts and returns to maintain compliance and transparency.