MOUNTGROVE HOLDINGS LTD

Executive Summary

Mountgrove Holdings Ltd is a micro-entity with weak financials, showing negative net assets and insufficient liquidity one year post-incorporation. The absence of operational activity and cash flow generation raises significant credit concerns. Without clear improvement in financial position or business activity, the company is not currently suitable for credit extension.

MOUNTGROVE HOLDINGS LTD - Analysis Report

Company Number: 15042187

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

1. Credit Opinion: DECLINE
   Mountgrove Holdings Ltd is a newly incorporated micro-entity (since August 2023) with minimal operating history. The latest filed accounts as of 31 August 2024 show net liabilities of £708, reflecting a weak balance sheet with current liabilities exceeding fixed assets. There is no evidence of revenue, profit, or cash generation, and the company reports zero employees, indicating no operational scale yet. Given the negative net assets and lack of working capital, the company currently does not demonstrate capacity to service debt or sustain credit facilities without additional capital injection or operational progress. The sole director and 100% shareholder has no disclosed track record of financial strength or business scale to mitigate risk at this stage.

2. Financial Strength:
   The balance sheet reveals fixed assets of £57,500 but current liabilities of £58,208, resulting in negative net current assets of £(58,208) and overall net liabilities of £(708). This indicates insufficient liquidity and a fragile financial position. Shareholders funds are negative, reflecting accumulated losses or initial capital deficits. No cash or current assets are reported to cover short-term obligations. Overall, the financial structure is weak and does not provide a buffer against financial stress.

3. Cash Flow Assessment:
   No cash or debtor information is provided, and net current assets are negative, which suggests poor liquidity and working capital constraints. The absence of employees and operational data implies no ongoing cash inflows from trading activities. The company may be relying on shareholder funds or external financing to meet obligations. This presents a high liquidity risk and limits the company’s ability to cover short-term liabilities.

4. Monitoring Points:

• Improvement in net current assets and liquidity position in future filings.
• Evidence of revenue generation or operational activity to support cash flow.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Any additional capital injections or financing arrangements by the shareholder/director.
• Changes in director or management that may impact governance or financial stewardship.