MNP SERVICES LTD.
Company number 04258213 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: MNP Services Ltd. (04258213)
1. Risk Rating: HIGH
Justification: The company exhibits a severe and accelerating deterioration in its financial position. Cash reserves have collapsed by 95% over four years (from £789,739 in 2021 to £41,307 in 2025), net assets have declined by 66% from their 2019 peak, and the most recent year shows a substantial loss evidenced by retained earnings falling by approximately £204,000. The sudden appearance of £1.16M in intercompany debtors raises serious concerns about cash extraction within the group structure, while current liabilities have surged by 66% year-on-year.
2. Key Concerns
Concern 1: Critical Cash Deterioration
Cash has fallen from £789,739 (2021) to £41,307 (2025), with a particularly sharp decline of 78% in the most recent year alone (from £186,805). With current liabilities of £1,062,869, the cash position represents less than 4% of near-term obligations. The company is heavily reliant on debtor collections to meet its commitments, and any delay or default could create an immediate liquidity crisis.
Concern 2: Intercompany Balances and Group Structure
A balance of £1,161,170 owed by group undertakings appeared in 2025 (nil in 2024). This coincides with the creation of MNP Services Holdings Limited as the majority PSC (owning >75% of shares). This pattern is consistent with cash being redirected upstream to a parent entity, leaving the operating company with minimal liquidity. The recoverability and terms of this intercompany balance require urgent scrutiny—it may represent cash that has effectively left the business.
Concern 3: Rapid Deterioration in Creditor Position
Trade creditors more than doubled from £354,295 to £793,025 in one year, while taxation and social security liabilities rose from £59,001 to £133,395. This pattern typically indicates the company is stretching supplier payments and potentially falling behind on obligations—a classic warning sign of cash flow distress.
3. Positive Indicators
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Long-established trading history: Incorporated in 2001, the company has operated for nearly 24 years, suggesting underlying business viability and market presence.
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Stable workforce: Employee count remained consistent at 29 across both 2024 and 2025, indicating ongoing operational activity and no headcount reduction despite financial pressures.
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Regulatory compliance: Accounts and confirmation statements are filed on time with no overdue filings. The company maintains a clean Companies House record.
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Positive net current assets: At £1,176,569, net current assets remain substantial, though the quality of current assets is questionable given the heavy weighting toward intercompany debtors.
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Operational presence: Active website and clear market positioning in Teesside/North Yorkshire plumbing and heating—a resilient trade sector with ongoing demand.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| MNP Services Holdings Limited | Full financial review of the parent entity. Assess its solvency, assets, and whether it has the capacity to repay the £1.16M owed. Obtain confirmation of repayment terms and any security held. |
| Intercompany debtor terms | Determine whether the £1,161,170 is on arm's-length terms, whether it is demandable, and whether any intra-group set-off arrangements exist. This balance may be effectively non-recoverable if the parent is also distressed. |
| Long-term liabilities (£809,547) | Clarify the nature of these obligations—whether they relate to loans, HP agreements, or other financing, and what repayment schedules apply. |
| Trade debtor collectibility | Trade debtors increased by 66% to £872,330. Assess ageing, credit quality, and provision adequacy. Determine whether this growth is proportionate to turnover or reflects payment collection difficulties. |
| Cash flow forecasting | Request 12-month forward cash flow projections. With only £41,307 in cash and significant liabilities falling due, assess whether the company can trade through its current position without additional funding. |
| Loss-making trajectory | Retained earnings declined by ~£204,000 in 2025. Obtain detailed P&L information (not filed under small company regime) to understand the drivers—whether operational losses, one-off items, or group charges. |
| Group support arrangements | Determine whether formal or informal guarantees, subordination agreements, or undertakings to support the company exist from the parent or shareholders. |
| Other debtors composition | Other debtors fell from £1,276,376 to £89,684. Understand what this comprised and whether it funded the intercompany balance. |