Company Number: 13162999

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: DECLINE
   MLGR CONSULTING LIMITED exhibits significant financial distress, with persistent and worsening net current liabilities and negative shareholders’ funds over the last three years. The current liabilities have tripled from £22,342 in 2023 to £67,105 in 2024, while current assets remain minimal, resulting in a large working capital deficit of £61,620. This weak liquidity position indicates an inability to meet short-term obligations without external funding. Furthermore, the company has not demonstrated any clear path to profitability or financial stability given the deepening losses. The risk of default on credit facilities is high, and the company lacks sufficient financial strength to support new or extended credit lines.

2. Financial Strength:
   The balance sheet reveals a highly leveraged and undercapitalized position. Shareholders’ funds are deeply negative at £-58,786 as of January 2024, deteriorating from £-17,601 the prior year. Total assets less current liabilities are also negative, reflecting that the company owes significantly more than it owns. Fixed assets are modest (£2,834), offering limited collateral value. The company’s reliance on creditor funding (notably "other creditors" at £65,356) to finance operations indicates poor financial resilience and a fragile capital structure.

3. Cash Flow Assessment:
   Cash on hand is critically low at £485, down from £1,034 in the previous year, coupled with a significant increase in current liabilities. Debtors of £5,000 are relatively small and likely insufficient to cover immediate payables. The worsening net current liabilities signal negative working capital, meaning the company does not have enough liquid assets to cover its short-term debts. This creates immediate liquidity risk and suggests operational cash flow is insufficient to sustain ongoing obligations without additional funding or restructuring.

4. Monitoring Points:

• Monitor monthly cash flow and liquidity ratios closely to detect worsening working capital deficits.
• Track changes in creditor balances, particularly related-party or other creditors that may impact credit risk.
• Review any improvements in debtor collection or increases in current assets.
• Observe for any capital injections or restructuring plans that could improve equity position.
• Watch for timely filing of accounts and confirmation statements as a sign of management competence and compliance.