MMR PROPERTIES (NW) LTD

Executive Summary

MMR PROPERTIES (NW) LTD’s financials reveal a fragile liquidity position and negative equity, with current liabilities substantially exceeding current assets. The company depends heavily on external loans without clear evidence of profitability or cash flow to service debts. Given the weak financial strength and high credit risk, credit facilities are not recommended at this stage.

MMR PROPERTIES (NW) LTD - Analysis Report

Company Number: 14250166

Analysis Date: 2025-07-29 20:57 UTC

Credit Opinion:
DECLINE. MMR PROPERTIES (NW) LTD exhibits a negative net asset position with persistent net current liabilities and negative shareholders' funds over the last three years. The company’s substantial current liabilities exceed its current assets by a wide margin, indicating liquidity strain. Moreover, the fixed asset base (investment property) is not sufficient to cover short-term debts, and the company has no evident profitability or cash inflow to service its obligations. The negative equity position and increasing bank loan and director loan balances raise concerns about financial stability and repayment capacity. Without additional capital injection or a clear plan to improve liquidity and profitability, the credit risk is high.

Financial Strength:
The company’s balance sheet shows fixed assets (land and buildings) valued around £426k but net current liabilities of approximately £430k as of the 2024 year-end, resulting in overall net liabilities of roughly £3.9k. Shareholders’ funds are negative and deteriorated slightly from the previous year. The company relies heavily on external financing, including bank loans (£265k) and loans from directors (£137k), which have increased year on year. The negative equity and persistent working capital deficits indicate weak financial strength and limited buffer to absorb shocks.

Cash Flow Assessment:
Cash at bank is minimal (£6.8k) compared to current liabilities (£437k), indicating very tight liquidity. The company’s working capital is deeply negative, reflecting an inability to meet short-term obligations from current assets. The increase in bank loans and director loans may be sustaining operations, but this is not a sustainable source of cash flow. There is no information about operating cash generation or profitability; the accounts exemption from audit and absence of profit and loss detail restrict insight, but the balance sheet suggests ongoing losses or cash burn.

Monitoring Points:

• Track changes in net current assets and liquidity position closely.
• Monitor any capital injections or restructuring of liabilities to improve equity and debt profile.
• Review bank loan covenant compliance and director loan arrangements.
• Watch for improvements in cash balances and potential profitability signals in future accounts.
• Observe any changes in property valuations that could affect asset backing.