ML2 LOGISTICS LTD

Executive Summary

ML2 Logistics Ltd is an active private limited company in freight transport by road, currently experiencing significant financial distress evidenced by sustained negative net assets and net current liabilities. Despite maintaining regulatory compliance and ongoing asset investment, the company's reliance on director loans and finance leases raises concerns about liquidity and solvency. Further detailed financial and operational due diligence is recommended to assess the viability of the business going forward.

ML2 LOGISTICS LTD - Analysis Report

Company Number: 14285456

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns given persistent negative net assets and net current liabilities, indicating an inability to meet short-term obligations without additional funding.

2. Key Concerns:

• Negative net assets worsening from -£29,291 in 2023 to -£24,315 in 2024, showing continued losses and erosion of shareholder equity.
• Substantial net current liabilities (-£34,494 in 2024) driven largely by director’s loan account (£28,673) and finance lease obligations, highlighting liquidity strain.
• Reliance on director loans and finance leases rather than operational cash flow to fund ongoing activities, raising questions on financial sustainability.

3. Positive Indicators:

• Timely filing of accounts and confirmation statements with no overdue filings, demonstrating regulatory compliance.
• Stable employee base with three staff members, indicating operational continuity.
• Incremental investment in tangible fixed assets (£13,697 in 2024) suggests ongoing business activity and asset growth.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account, including repayment plans and whether it is interest-bearing or convertible.
• Review cash flow statements (not provided) to assess operational cash generation and short-term liquidity management.
• Clarify the business model and turnover figures (not disclosed) to understand revenue trends and profitability trajectory.
• Examine the impact of finance lease obligations on cash flow and whether alternative financing or restructuring is planned.
• Verify any contingent liabilities or off-balance sheet commitments that could affect solvency.