MMC PROJECT MANAGEMENT LTD

Executive Summary

MMC Project Management Ltd faces significant solvency and liquidity challenges, evidenced by prolonged negative net assets and working capital deficits. However, the company demonstrates regulatory compliance and an improving cash position, which may support short-term operations. Further due diligence is recommended to clarify the sustainability of its financial recovery and operational model.

MMC PROJECT MANAGEMENT LTD - Analysis Report

Company Number: 14034431

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: HIGH
   The company exhibits a consistent net liabilities position over the past three years, with net current liabilities and negative shareholder funds indicating solvency concerns. The negative working capital and persistent losses suggest difficulty in meeting short-term obligations without external support.

2. Key Concerns:

• Solvency Risk: Net assets and shareholders' funds are significantly negative (£-42,139 in 2024), demonstrating that liabilities exceed assets and equity, which raises doubts about the company's ability to cover debts from its own resources.
• Liquidity Issues: Negative net current assets (£-44,659 in 2024) indicate that current liabilities surpass current assets, implying cash flow constraints that could affect operational continuity.
• Operational Sustainability: Despite an increase in cash from £8,575 to £34,170, the company’s ongoing losses (accumulated in the P&L reserve) and low asset base raise questions about its capacity to generate sustainable profits and grow.

3. Positive Indicators:

• Timely Filing and Compliance: The company’s accounts and confirmation statements are filed on time with no overdue reports, indicating good regulatory compliance and governance discipline.
• Active Website and Market Presence: The company maintains an active web presence promoting agile project management services, suggesting ongoing business activity and client engagement.
• Increasing Cash Position: Cash balance improved significantly in the latest year, which may reflect some positive cash flow management or capital injection.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (£78,829) to assess repayment schedules and potential creditor pressure.
• Review recent trading performance and cash flow forecasts to understand if the company is progressing toward profitability and improving liquidity.
• Assess any external financial support from shareholders or related parties, given the negative equity position.
• Confirm the absence of director disqualifications or governance issues, especially since the directors share the same address and control.
• Consider the business model and market conditions for environmental consulting services to evaluate operational risks.