MMH ELECTRICS LTD

Executive Summary

MMH Electrics Ltd presents a positive credit profile with improving financial strength and liquidity. The company has successfully reduced liabilities and strengthened equity, indicating good financial stewardship and ability to meet credit obligations. Continued monitoring of cash flow and working capital will be essential to maintain creditworthiness.

MMH ELECTRICS LTD - Analysis Report

Company Number: 13268497

Analysis Date: 2025-07-20 18:07 UTC

1. Credit Opinion: APPROVE - MMH Electrics Ltd demonstrates improving financial stability and liquidity over the latest financial year. The company has significantly reduced its current liabilities while increasing net current assets and shareholders’ funds, indicating stronger capacity to meet short-term obligations and service potential credit facilities. The director's continuity and absence of negative conduct records support sound management stewardship. The company’s exemption from audit is typical for a small entity and does not currently raise concerns.

2. Financial Strength: The balance sheet shows a positive trajectory from March 2021 to March 2024. Shareholders’ funds increased from £27.6k in 2021 to £51.7k in 2024, reflecting retained earnings growth and capital preservation. Total assets less current liabilities rose to £51.7k from £33.7k the prior year. Fixed assets have decreased somewhat but remain modest (£12k approx). The company has a low share capital (£1k) typical for a small private company. Overall, the company has a solid equity base relative to its size and manageable liabilities.

3. Cash Flow Assessment: Cash at bank decreased somewhat from £39k in 2023 to £31k in 2024 but remains healthy relative to current liabilities of £9.4k, providing a comfortable liquidity buffer. Net current assets improved strongly to £39.7k from £14.7k, indicating improved working capital management. Debtors are stable around £18k, with trade debtors being a modest portion (£2.6k). Creditors dropped significantly, suggesting the company has paid down short-term debts effectively. The liquidity position supports ongoing operational and financial commitments.

4. Monitoring Points:

• Continue monitoring cash flow trends to ensure liquidity remains strong, especially given some reduction in cash balances.
• Watch debtor aging and creditor payment terms to manage working capital efficiently.
• Observe any changes in fixed assets usage or disposals that may impact operational capacity.
• Confirm timely filing of next accounts and confirmation statements to avoid compliance risks.
• Track profitability trends once income statements become available, as current accounts exclude profit/loss details.