Company Number: 14192165

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: LOW
   MPF Advisory Ltd demonstrates a strong liquidity position with cash significantly exceeding current liabilities, positive net current assets, and growing shareholders’ funds. The company is active, up to date with filings, and operating within the small company exemption framework, indicating compliance and operational stability.

2. Key Concerns:

• Tax Liabilities Growth: Corporation tax creditors increased substantially from £40,156 to £63,483, representing a significant current liability that requires monitoring for timely settlement.
• Social Security and Other Taxes: The appearance of a new substantial tax-related creditor (£34,700) in 2024 may indicate recent tax obligations or potential timing issues in payments.
• Director’s Account Fluctuations: The director’s loan account moved from a negative balance in 2023 (-£13,812) to a positive balance (£5,092) in 2024, which warrants review to understand the nature and terms of these transactions.

3. Positive Indicators:

• Strong Liquidity: Cash balances increased notably from £114,950 to £252,776, providing a comfortable buffer to meet short-term obligations.
• Growing Net Assets & Equity: Net assets and shareholders’ funds more than doubled from £71,601 in 2023 to £174,995 in 2024, showing profitable retention or capital injection.
• Up to Date Compliance: No overdue accounts or confirmation statements, demonstrating good regulatory governance and operational diligence.
• Stable Employee Base: The company maintained a steady workforce of 2 employees, consistent with a focused consultancy operation.

4. Due Diligence Notes:

• Verify the nature and timing of the corporation tax and social security liabilities to assess any risk of late payment penalties or cash flow strain.
• Review director’s loan account transactions and agreements to ensure they are properly documented and not indicative of cash flow dependency on director funding.
• Confirm revenue trends and profitability given absence of detailed profit and loss information in the filings, to assess ongoing operational sustainability.
• Investigate debtors aging profile and collectability given the increase in trade and other debtors from £10,049 to £21,164.
• Clarify any contingent liabilities or off-balance-sheet commitments not disclosed in filleted accounts.