MPC MAC PRINT CONSULT LTD

Executive Summary

MPC Mac Print Consult Ltd exhibits a weak financial position with negative working capital and minimal net assets, raising concerns about its ability to meet short-term obligations. Liquidity is strained by low cash and reliance on director loans, with no clear profitability or cash flow improvements. Credit facilities are not recommended without significant additional security or financial support.

MPC MAC PRINT CONSULT LTD - Analysis Report

Company Number: 14175334

Analysis Date: 2025-07-20 13:19 UTC

1. Credit Opinion: DECLINE
   MPC Mac Print Consult Ltd is an active private limited company incorporated in mid-2022, engaged in management consultancy activities. The company’s most recent accounts (year ended 30 June 2024) show a very weak financial position with net current liabilities of £2,966 and minimal net assets of £124. The negative working capital indicates the company’s current liabilities exceed current assets, raising concerns about liquidity and its ability to meet short-term obligations. Given the company's small scale (single director and employee), very low equity base, and ongoing negative net current assets, the risk of default on any credit facility or payment obligations is elevated. No evidence of profitability or cash flow improvement is apparent, and the company’s reliance on director loans (noted in debtors) suggests external financing is limited. Therefore, credit approval is not recommended without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet reflects very limited fixed assets (£3,090) and current assets (£12,536), with cash on hand at only £452. Notably, debtors include a significant amount (£10,828) classified as loans to directors, which may not be readily collectible. Current liabilities stand at £15,502, causing a negative working capital position. Net assets have declined since the prior year (£362 in 2023 vs. £124 in 2024), indicating erosion of equity possibly due to losses or withdrawals. The company is classified as a small entity under the Companies Act, but its financial health is tenuous with minimal capital and low retained earnings (£24 in reserves). The limited asset base and negative working capital raise concerns about solvency under stress.

3. Cash Flow Assessment:
   Cash balances are very low (£452), and the company has negative net current assets, implying insufficient liquid resources to cover short-term liabilities. The debtor composition, heavily weighted towards director loans, reduces the quality of current assets as these funds may not be immediately convertible to cash. There is no indication of positive operational cash flow or profitability in the accounts, and the decrease in cash from prior year (£3 to £452) remains insufficient. The company’s liquidity position is weak, and it would likely struggle to meet any unexpected cash demands or service debt without additional capital injections or improved operational cash inflows.

4. Monitoring Points:

• Working capital and liquidity ratios: monitor if net current assets improve and if cash balances increase.
• Director loans: assess the collectability and any changes in related party balances.
• Profitability and retained earnings: watch for signs of earnings improvement or further erosion of reserves.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.
• Any changes in business scale or capital structure that might affect repayment capacity.