Company Number: 14062743

Analysis Date: 2025-07-19 12:26 UTC

Credit Opinion:
DECLINE. ML-AM-2-6-02 LTD exhibits weak financial health characterized by a negative net asset position as of the latest accounts (September 2024). The company’s liabilities exceed its assets, and it shows significant net current liabilities, indicating potential liquidity issues. The firm is in a capital deficit and has no reported employees or trading profits, which raises concerns about its ability to service debt or meet commercial obligations reliably.

Financial Strength:
The balance sheet shows fixed assets valued at approximately £2.45 million, which is the primary asset base. However, current liabilities stand at £1.72 million, vastly exceeding current assets of only £22,396, leading to net current liabilities of around £778,460. Total liabilities (current plus long-term) surpass the total assets, resulting in negative shareholders’ funds of £47,628. This decline from a positive net asset of £81,500 a year earlier suggests deteriorating financial stability. The company is in the micro-entity category, so financial disclosures are limited, but the negative equity signals financial distress.

Cash Flow Assessment:
With no employees and minimal current assets (cash or equivalents), liquidity is severely constrained. The substantial current liabilities indicate short-term obligations that the company may struggle to meet without additional funding or asset sales. The absence of reported profit or reserves and the negative working capital position highlight a lack of operational cash flow to cover immediate debts or operational expenses, posing a risk to ongoing viability.

Monitoring Points:

• Monitor upcoming filings for any signs of improved liquidity or capital injection.
• Watch for changes in current liabilities or asset sales that might affect solvency.
• Review any new loans or credit facilities that may improve short-term funding.
• Assess director actions or restructuring efforts aimed at reversing negative equity.
• Track sector developments in property letting and building project development that may impact revenue prospects.