MODERN PROPERTY SERVICE (MPS) LTD

Executive Summary

Modern Property Service (MPS) Ltd is an early-stage micro business with a negative net asset position and insufficient working capital, indicating limited capacity to meet short-term liabilities. The company’s financial fragility and lack of operational track record lead to a decline in credit recommendation. Monitoring future financial improvements and cash flow generation will be critical to reassess creditworthiness.

MODERN PROPERTY SERVICE (MPS) LTD - Analysis Report

Company Number: 14862035

Analysis Date: 2025-07-20 15:57 UTC

1. Credit Opinion: DECLINE
   Modern Property Service (MPS) Ltd is a newly incorporated micro-entity with minimal financial history. The latest accounts show net liabilities of £1,045 and negative working capital, indicating the company is currently undercapitalized and unable to meet short-term obligations from existing current assets. The absence of profitability data and limited operational track record increase uncertainty regarding its capacity to service debt and sustain business operations. The company’s financial position and cash flow outlook do not support extending credit at this stage.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £1,045 and net assets of the same amount in negative territory. Fixed asset information is absent, likely negligible given the micro-entity status. Shareholders’ funds are negative, reflecting accumulated losses or initial capital shortfall. The company employs only one person and has not been audited, reducing transparency. Overall, the financial strength is weak with no buffer to absorb adverse events or support credit extension.

3. Cash Flow Assessment:
   Current assets of £955 versus current liabilities of £2,000 yields a working capital deficit, signaling liquidity stress. The company’s ability to convert assets to cash quickly is constrained, and it may face difficulties covering immediate payables. Lack of cash flow statements and profit & loss details impedes full cash flow analysis, but the negative net current assets strongly suggest cash flow challenges.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios in future filings.
• Evidence of profitability and positive cash flow generation.
• Timely filing of accounts and confirmation statements to monitor compliance.
• Stability in management and ownership structure, particularly given recent director changes.
• Any capital injections or external funding to strengthen balance sheet.