MMW DEVELOPMENTS LTD

Executive Summary

MMW DEVELOPMENTS LTD exhibits significant solvency and liquidity risks as reflected by negative net assets and high long-term liabilities relative to asset base and cash resources. While regulatory filings are up to date and the investment property provides tangible assets, the financial position raises concerns about the company’s ability to meet obligations without further capital or restructuring. Additional due diligence on asset valuations and creditor terms is recommended to clarify risk exposure.

MMW DEVELOPMENTS LTD - Analysis Report

Company Number: 13888977

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-8,341) and net current liabilities (£-7,251) as of the latest financial year end. Its total liabilities exceed its assets, indicating solvency concerns. The presence of significant bank borrowings and other creditors due after one year (£284,690) against relatively modest current assets and cash raises liquidity risk.

2. Key Concerns:

• Negative shareholders’ funds and net assets indicate the company is technically insolvent on a balance sheet basis.
• High long-term liabilities (£284,690) compared to fixed assets (£283,600) and very low current assets, with cash of only £1,509, suggest potential difficulties meeting short-term and long-term obligations.
• Investment property valuation is director-assessed rather than independently verified, potentially overstating asset values and masking deeper financial weakness.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, indicating regulatory compliance and proper governance.
• The business is a property letting entity with a tangible fixed asset base (investment property valued at £283,600) which may provide some recovery value in distress scenarios.
• Sole director and 100% shareholder is identified with no red flags such as disqualification or multiple directorships noted, implying clear control and responsibility.

4. Due Diligence Notes:

• Verify the valuation methodology and independence of the investment property valuation to ascertain true asset value and potential impairment.
• Review loan agreements and creditor terms for the £284,690 long-term liabilities, including any covenants or repayment schedules that could impact cash flow.
• Obtain cash flow forecasts and operating performance details to assess ongoing liquidity and operational viability given current negative working capital.
• Investigate any contingent liabilities or off-balance sheet commitments related to the property or financing arrangements.