MORGAWR LTD

Executive Summary

Morgawr Ltd is a newly incorporated micro-entity with negative net assets and current liabilities exceeding current assets, indicating poor financial health and liquidity constraints. Management appears inexperienced, and the company currently lacks capacity to service debt, leading to a credit decline recommendation. Ongoing monitoring of capital injections and operational progress is essential to reassess creditworthiness.

MORGAWR LTD - Analysis Report

Company Number: 14858215

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: DECLINE
   Morgawr Ltd’s financials show a weak position with net liabilities of £664 and net current liabilities of £264 at just its first year end. The company operates in a specialized niche (distilling spirits) but lacks any employees and shows minimal current assets (£61) against short-term creditors (£325). This suggests limited operational scale and liquidity issues. The directors’ occupations (student, chef, retired) imply limited full-time management experience in the sector, raising concerns about business resilience and effective financial stewardship. Without evidence of strong cash inflows or capital injection, the company’s ability to service debt or meet credit obligations is highly questionable at this stage.

2. Financial Strength
   Balance sheet strength is poor. Negative net assets and net current assets indicate the company is insolvent on a balance sheet basis. Accruals and deferred income of £400 further exacerbate the liabilities. The micro-entity status means limited disclosure, but the lack of fixed assets or working capital buffer is a concern. The negative equity position signals reliance on external funding or shareholder support to continue trading.

3. Cash Flow Assessment
   Minimal current assets and significant current liabilities reveal tight liquidity and negative working capital. No employees and limited turnover imply minimal cash generation from operations. The company’s liquidity risk is high, with no clear sources of cash to meet immediate obligations. This will constrain the ability to secure further credit without substantial guarantees or capital injection.

4. Monitoring Points

• Track any capital contributions or shareholder loans to improve liquidity.
• Monitor filing of next annual accounts and confirmation statement for changes in financial position or director composition.
• Watch for operational developments, including staff hires or evidence of revenue growth.
• Assess any changes in director involvement or expertise to gauge management capability improvements.