MO TRAFFIC MANAGEMENT LTD

Executive Summary

MO TRAFFIC MANAGEMENT LTD shows persistent negative equity and working capital deficits, reflecting poor financial health and limited ability to meet debt obligations. The lack of operational scale or positive cash flow raises significant credit risk, leading to a decline recommendation for new credit facilities. Ongoing monitoring of liquidity and capital structure is essential to detect any improvement or deterioration in financial stability.

MO TRAFFIC MANAGEMENT LTD - Analysis Report

Company Number: 14329862

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: DECLINE
   MO TRAFFIC MANAGEMENT LTD exhibits a persistently negative net asset position and net current liabilities over the past two years, indicating a weak financial foundation. The company’s inability to generate positive working capital or build equity signals a high risk of insolvency and limited capacity to service debt obligations. Given the absence of employees and minimal current assets, plus no signs of operational scale or profitability, the company is not currently creditworthy for lending or extended trade credit.

2. Financial Strength:
   The balance sheet shows net current liabilities of £4,768 (2024) and £5,696 (2023) with net assets of -£4,838 and -£5,766 respectively. This negative equity position reflects accumulated losses or undercapitalization since incorporation in 2022. Total assets are minimal (£123 in current assets) with no fixed assets reported, and liabilities predominantly short-term creditors. The financial trajectory is stagnant with no improvement in capital structure, indicating weak financial resilience.

3. Cash Flow Assessment:
   Current assets are negligible and predominantly cash or receivables (£123 in 2024), while current liabilities are significantly higher (£4,891 in 2024), resulting in negative working capital. This indicates a liquidity shortfall and inability to cover short-term obligations from available liquid resources. The lack of employees and cost data suggests minimal operating activity, raising concerns on how the company funds its operations and settles payables.

4. Monitoring Points:

• Net current assets and net asset trends to assess if equity position improves.
• Cash flow statements (if available) for operating inflows and financing sources.
• Any changes in creditor levels or payment terms with suppliers.
• Company’s ability to file next accounts on time and any director commentary on going concern.
• Potential capital injections or restructuring plans to restore solvency.