M&P PROPERTY RENTALS LIMITED

Executive Summary

M&P Property Rentals Limited is financially weak with negative net assets and significant working capital deficits, indicating high credit risk. The company’s inability to generate liquidity and repay creditors suggests declining financial health. Credit facilities should be declined unless substantial improvements or guarantees are provided.

M&P PROPERTY RENTALS LIMITED - Analysis Report

Company Number: 13800429

Analysis Date: 2025-07-29 20:07 UTC

1. Credit Opinion: DECLINE
   M&P Property Rentals Limited demonstrates a weak financial position with negative net assets of £3,363 as of 31 December 2024, indicating liabilities exceed assets. The company has persistent negative equity since 2022, suggesting ongoing financial strain. Current liabilities significantly surpass current assets, leading to a net current liabilities position of approximately £30,125. With no employees and minimal liquidity, the company’s ability to service new or existing debt is doubtful. The absence of positive retained earnings or reserves further weakens the creditworthiness. Given these factors, extending credit would be high risk without substantial guarantees or restructuring.

2. Financial Strength:
   The company holds fixed assets around £94,500, which appear stable over the last three years, likely representing property holdings given the business nature. However, total liabilities exceed total assets primarily due to long-term creditors of roughly £67,700 and short-term creditors around £36,400. The negative shareholders’ funds reflect accumulated losses or capital deficiency. The financial structure is highly leveraged, and there is no evidence of profitability or equity buildup to absorb potential losses.

3. Cash Flow Assessment:
   Current assets are very low (£6,295), insufficient to cover current liabilities (£36,420), resulting in a net current liability position. This indicates poor liquidity and a working capital deficit. The company shows no employees and likely limited operating cash inflows, which raises concerns about the ability to meet short-term obligations and operational expenses. The lack of cash reserves or other liquid assets significantly impairs financial flexibility.

4. Monitoring Points:

• Track net asset position and aim for restoration of positive equity through operational improvements or capital injections.
• Monitor current ratio and working capital trends closely to avoid liquidity crises.
• Review creditor arrangements and debt maturities to assess refinancing risks.
• Evaluate any changes in fixed asset valuations and impairment risks.
• Watch for updated financial statements indicating profitability or improved cash flows.