MP AUTOPAINT LTD

Executive Summary

MP AUTOPAINT LTD is an active micro-entity operating in vehicle maintenance with significant financial distress indicators, including persistent negative equity and liquidity shortfalls. While regulatory compliance appears satisfactory, the company’s solvency and cash flow position warrant close scrutiny to assess ongoing viability. Investors should conduct further due diligence on liabilities and operational plans before considering exposure.

MP AUTOPAINT LTD - Analysis Report

Company Number: 14075805

Analysis Date: 2025-07-20 17:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, indicated by negative shareholders’ funds that have deteriorated further in the latest financial year and current liabilities substantially exceeding current assets. The presence of creditors falling due after one year adds to financial obligations without sufficient asset backing.

2. Key Concerns:

• Negative Shareholders’ Funds worsening from -£6,227 (2023) to -£20,881 (2024), reflecting sustained losses or capital erosion.
• Current liabilities (£14,129) far exceed current assets (£351) as of March 2024, implying poor liquidity and potential difficulties meeting short-term obligations.
• Introduction of long-term creditors (£7,103) in 2024 suggests increased borrowing or deferred liabilities without clear asset coverage, raising concerns about long-term solvency.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• The business has increased its workforce from 1 to 2 employees, which may reflect modest operational growth or scaling efforts.
• Ownership and control are consolidated under a single director and significant shareholder, potentially enabling swift decision-making.

4. Due Diligence Notes:

• Investigate underlying causes of continued negative equity and assess the company’s business plan or strategy for returning to profitability or capital adequacy.
• Review the nature and terms of current and long-term liabilities to understand payment schedules, creditor relations, and potential refinancing or restructuring needs.
• Assess cash flow projections and working capital management to evaluate whether liquidity pressures may lead to operational disruptions or insolvency risks.
• Confirm the accuracy and completeness of financial records given the micro-entity exemption and unaudited status.