MKS POWER LIMITED

Executive Summary

MKS POWER LIMITED demonstrates a stable and improving financial position with growing net assets and healthy working capital, suitable for modest credit facilities. The company’s micro-entity status and limited history warrant cautious exposure with ongoing monitoring of profitability and liquidity metrics. Overall, the business shows sound financial stewardship and capacity to meet short-term obligations.

MKS POWER LIMITED - Analysis Report

Company Number: 13871747

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: APPROVE with caution. MKS POWER LIMITED is a recently incorporated micro-entity (since January 2022) operating in the IT consultancy sector. The company shows a positive trend in net assets and working capital, indicating improving financial stability. However, due to limited operating history, small scale, and modest asset base, credit exposure should be moderate and subject to periodic review.

2. Financial Strength: The company’s balance sheet shows progressive improvement. Net assets increased from £10,315 in 2023 to £25,251 in 2024, primarily driven by growth in current assets (£47,415 in 2024 from £23,132 in 2023) outpacing the rise in current liabilities. Fixed assets remain minimal at £3,628, consistent with a service-oriented IT consultancy. Shareholders’ funds mirror net assets, reflecting no long-term debt. Overall, the balance sheet is healthy for a micro-entity, with adequate equity buffer and no apparent solvency concerns.

3. Cash Flow Assessment: Current assets significantly exceed current liabilities, yielding net current assets (working capital) of £21,623 in 2024, up from £6,687 in 2023. This suggests sufficient short-term liquidity to meet obligations as they fall due. The increase in current liabilities from £12,591 (2023) to £25,792 (2024) is matched by a proportionally larger increase in current assets, indicating balanced working capital management. Limited employee count (1) suggests low fixed overheads, supporting cash flow stability. However, absence of detailed profit and loss data limits full cash flow analysis.

4. Monitoring Points:

• Monitor ongoing revenue and profit generation as financial statements currently lack a P&L disclosure.
• Track growth in current liabilities relative to current assets to avoid liquidity strain.
• Observe any changes in ownership/control or director appointments that may impact governance.
• Review next annual accounts and confirmation statement filings for timely compliance.
• Watch for any expansion in fixed assets or staff which may affect capital structure or cash flow.