MONKS TECHNICAL SERVICES LIMITED

Executive Summary

Monks Technical Services Limited is an early-stage micro-entity with negative net assets and working capital deficits, indicating high solvency risk. While compliance with statutory filings is current and ownership structure is clear, the company’s financial position raises concerns about its ability to meet obligations without additional capital support. Further investigation into its cash flow, director financing, and business viability is recommended before considering investment.

MONKS TECHNICAL SERVICES LIMITED - Analysis Report

Company Number: 14686591

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net liabilities of £7,721 and negative net current assets of £8,345, indicating an inability to meet short-term obligations from current assets. Being newly incorporated and with only micro-entity accounts available, financial resilience is minimal.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company’s liabilities exceed assets, signaling potential insolvency risk.
• Limited Operating History: Incorporated less than two years ago with minimal financial data, making sustainability assessment difficult.
• Director Loan Exposure: An unsecured, interest-free director loan of £1,643 may indicate reliance on director funding to maintain operations, increasing liquidity risk.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and governance discipline.
• Clear Ownership and Control: One PSC with 75-100% ownership and voting rights simplifies accountability and decision-making.
• Micro-Entity Status: Reduced reporting burden may allow focus on operational build-up and cost control in early stages.

4. Due Diligence Notes:

• Investigate underlying causes of negative net assets and whether there is a viable plan to restore profitability and balance sheet strength.
• Assess cash flow statements and management forecasts (if available) to gauge liquidity position beyond balance sheet snapshot.
• Review director loan terms and intentions regarding repayment or conversion to equity to understand financial support mechanisms.
• Confirm whether the company has secured any external financing or has contracts/orders to support future revenue growth.
• Examine the business model in the "Other building completion and finishing" sector to evaluate competitive position and market risks.