MLA TRANSPORT LTD

Executive Summary

MLA Transport Ltd is a start-up with a weak financial foundation, showing negative net assets and working capital deficit after its first year. Its liquidity position is strained, and there is no available profit data to support creditworthiness. Without capital strengthening or demonstrated cash flow improvements, the company is currently unsuitable for unsecured credit facilities.

MLA TRANSPORT LTD - Analysis Report

Company Number: 15565225

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: DECLINE

MLA Transport Ltd is a newly established small private limited company incorporated in March 2024. The latest financials to 31 March 2025 show a negative net asset position (£-3,352) and net current liabilities of £14,540, indicating an immediate working capital deficiency. The company’s cash balance of £16,402 is insufficient to cover current liabilities of £30,942, placing liquidity under pressure. Given the short trading history, negative equity, and lack of profitability information (income statement not filed), the company presently lacks the financial strength and liquidity to reliably service debt or meet credit terms. The controlling shareholder/director holds 100% voting rights, but there is limited evidence of established management robustness or financial track record.

2. Financial Strength:

The balance sheet reveals total fixed assets of £11,188 (plant and machinery), with no significant intangible or investment assets. The company has minimal equity (£100 share capital) but retained losses of £3,452 resulting in negative shareholders’ funds. Current liabilities exceed current assets, producing a working capital deficit. The financial position suggests the company is undercapitalized and operating at a loss or break-even at best. The absence of profitability data restricts assessment of earnings capacity, but the balance sheet weakens the credit profile.

3. Cash Flow Assessment:

The company’s cash position (£16,402) is less than half its short-term liabilities, indicating tight liquidity. Negative net current assets imply potential difficulties in meeting obligations as they fall due without additional funding or improved operating cash inflows. The short operating period (about one year) and limited asset base reduce flexibility to generate cash from operations or asset disposals. Without positive cash flow from trading or external capital injections, there is heightened risk of cash shortfalls.

4. Monitoring Points:

• Filing of full accounts including profit and loss statement to evaluate operating performance and profitability.
• Changes in working capital and current liabilities to assess liquidity trends.
• Capital injections or debt restructuring that improve equity and cash reserves.
• Stability and continuity of management and ownership structure.
• Cash flow forecasts and actual liquidity coverage going forward.
• Timely filing of statutory returns to avoid compliance or credit risk issues.