MNR PROPERTIES LIMITED

Executive Summary

MNR Properties Limited maintains a stable fixed asset base primarily in investment property but exhibits liquidity pressures as current liabilities exceed current assets in the latest financial year. The company carries substantial long-term debt nearly matching asset values, resulting in minimal equity and low reported profitability. While compliance with filing obligations is current, the financial structure indicates a medium risk profile warranting further investigation into debt servicing capacity and operational sustainability.

MNR PROPERTIES LIMITED - Analysis Report

Company Number: 13550015

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position but has a significant liability structure dominated by long-term creditors, including bank loans and shareholder contributions nearly equal to the value of fixed assets. Current liabilities slightly exceed current assets in the latest year, indicating some liquidity pressure.

2. Key Concerns:

• Liquidity Pressure: The net current assets turned negative in 2024 (£-3,671) compared to prior positive positions, signaling potential short-term cash flow constraints.
• High Leverage: Total creditors due after one year (£622k) are nearly equivalent to fixed assets (£633k), suggesting the company is highly leveraged with limited equity cushion (£6,840 net assets).
• Minimal Profitability: The profit for the year 2024 was nominal (£10), indicating limited operational profitability and weak earnings buffer to absorb shocks or support debt servicing.

3. Positive Indicators:

• Stable Asset Base: Investment property value held steady at £620,000, providing a tangible asset backing.
• Compliance: All statutory filings including accounts and confirmation statement are filed timely with no overdue status or penalties noted.
• Single Shareholder Control: Ownership and voting rights concentrated with one individual, which may facilitate swift decision-making and governance continuity.

4. Due Diligence Notes:

• Investigate the terms and repayment schedule of the bank loans and shareholder contributions to assess refinancing risks and covenant compliance.
• Review cash flow forecasts and working capital management strategies to understand liquidity planning and the ability to meet short-term obligations.
• Assess the business model sustainability and revenue generation capability since reported profits are minimal, despite asset holdings.
• Confirm the valuation methodology for investment property to verify asset valuation realism and impairment risks.
• Consider director’s loan arrangements and related party transactions for any financial dependencies or risks.