MLA PROPERTIES & LETTINGS LTD

Executive Summary

MLA Properties & Lettings Ltd demonstrates a fragile financial position with negative net assets, persistent working capital deficits, and minimal cash reserves, undermining its capacity to meet liabilities or service debt. Lack of profitability data and reliance on a single director with full control raises concerns about financial stewardship and resilience. Credit facilities are not recommended without significant improvement in liquidity and capitalisation.

MLA PROPERTIES & LETTINGS LTD - Analysis Report

Company Number: 13971574

Analysis Date: 2025-07-20 11:03 UTC

1. Credit Opinion: DECLINE
   MLA Properties & Lettings Ltd shows persistent net liabilities over the past two years, with negative shareholders' funds (£-655k in 2024) and working capital deficits (net current liabilities of £49k in 2024). Despite holding investment property valued at £47k, the company’s current liabilities substantially exceed its current assets, indicating liquidity stress. The absence of profitability figures (income statement not filed) and continued reliance on director funding undermine confidence in its ability to service debt or new credit facilities.

2. Financial Strength:
   The company’s balance sheet is weak. Fixed assets and investment property total about £49k, but current liabilities near £56k create a net current liability position. The company’s negative net assets and shareholders’ funds reflect accumulated losses or undercapitalisation. No equity injection or retained profits have improved the position since incorporation in 2022. The financial structure suggests limited buffer against financial shocks.

3. Cash Flow Assessment:
   Cash balances are minimal (£6.7k in 2024, up from £3k), insufficient to cover short-term obligations. The large current liabilities relative to cash and lack of net current assets point to tight liquidity. Without evidence of operating cash inflows or external financing, the company appears dependent on external support or director advances to meet ongoing liabilities. This weak cash flow position raises concerns about short-term repayment capability.

4. Monitoring Points:

• Improvement or deterioration in net current assets and liquidity ratios.
• Filing of profit and loss accounts to assess operational profitability and cash generation.
• Changes in investment property valuation or asset base that could enhance security.
• Any equity injections or director loans that improve net asset position.
• Timeliness and completeness of statutory filings to ensure transparency.