MONFARED HOLDINGS LTD

Executive Summary

MONFARED HOLDINGS LTD presents a weak financial profile with persistent negative net assets and insufficient liquidity, limiting its ability to meet debt obligations. The company lacks operational scale and cash flow, resulting in a high credit risk. Without significant financial improvement or capital support, credit extension is not advisable at this time.

MONFARED HOLDINGS LTD - Analysis Report

Company Number: 13131233

Analysis Date: 2025-07-20 11:04 UTC

1. Credit Opinion: DECLINE
   MONFARED HOLDINGS LTD exhibits very weak financial health with net liabilities recorded consistently over the past years. The current and prior year accounts show net current liabilities and negative net assets, indicating the company is technically insolvent. There is no evidence of income generation or operational activity given zero employees and minimal asset base. This raises significant doubts about their ability to service any debt or credit facility.

2. Financial Strength:
   The balance sheet reflects a micro-entity with negligible assets (£73 current assets) and liabilities exceeding assets (£97 current liabilities), resulting in negative net assets of £24 as of the latest 2024 filing. Shareholders’ funds remain negative or minimal, indicating no retained earnings or capital injection sufficient to strengthen equity. The company’s financial trajectory shows no improvement or growth, maintaining a fragile financial position.

3. Cash Flow Assessment:
   The company’s liquidity is extremely limited with current assets well below current liabilities, implying negative working capital. This suggests a lack of cash or liquid resources to cover short-term obligations. The absence of employees and low asset values indicate minimal operational cash flows. The company is at high risk of cash flow insolvency and would struggle to meet payment commitments without external funding.

4. Monitoring Points:

• Watch for any capital injections or equity funding improving net assets and liquidity.
• Monitor future accounts for signs of revenue generation or reduction of current liabilities.
• Track director changes or related party transactions that might affect financial stability.
• Review any overdue filings or changes in company status that could indicate distress.