MMC 2020 LIMITED

Executive Summary

MMC 2020 Limited exhibits a low risk profile supported by improving financial strength, positive liquidity, and timely compliance with filing obligations. While the company’s debt structure and concentrated ownership warrant further review, current data suggest operational stability and solvency. Additional insight into profitability and long-term liabilities would enhance confidence in sustained financial health.

MMC 2020 LIMITED - Analysis Report

Company Number: SC662052

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: LOW
   MMC 2020 Limited demonstrates a solid financial position with positive net assets, strong net current assets, and no overdue filings. The company shows a trend of improving equity and liquidity, underpinning its ability to meet obligations and operate sustainably.

2. Key Concerns:

• Debt Profile: The company has significant creditors due after one year (£69,228), which requires monitoring to ensure long-term solvency.
• Concentration of Control: Majority ownership and control are held by two related individuals, which may pose governance risks if not managed with appropriate oversight.
• Limited Share Capital: The minimal share capital (£2) is typical for small private entities but offers limited capital buffer in case of financial stress.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances increased to £177,174 with current assets significantly exceeding current liabilities, resulting in net current assets of £126,205.
• Consistent Growth in Net Assets: Shareholders’ funds have doubled from £53,965 in 2023 to £107,851 in 2024, reflecting retained earnings and potentially profitable operations.
• Compliance and Timeliness: All statutory filings are up to date with no overdue accounts or confirmation statements, indicating good regulatory compliance.

4. Due Diligence Notes:

• Examine Debt Terms: Review the nature and repayment schedule of the £69,228 in long-term creditors to assess refinancing risk or covenant compliance.
• Review Profit and Loss Details: The company has opted not to file a profit and loss account publicly; obtaining internal P&L statements will clarify profitability and cash flow dynamics.
• Assess Related Party Transactions: Given the concentration of control and director loans (£8,982), investigate the terms and any potential conflicts of interest or financial dependencies.