MPG (ST LEONARDS) LIMITED

Executive Summary

MPG (ST LEONARDS) LIMITED is a newly formed micro-entity with a negative net asset base and working capital deficit, indicating weak financial strength and liquidity concerns. Due to the lack of trading history and negative equity, credit extension is not recommended at this stage. Close monitoring of future financial performance and capital support is essential before reconsidering credit facilities.

MPG (ST LEONARDS) LIMITED - Analysis Report

Company Number: 15199319

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: DECLINE
   MPG (ST LEONARDS) LIMITED is a very recently incorporated micro-entity (incorporated in October 2023) with only one year of financial data. The company shows a net liability position of £126,008, indicating that current liabilities exceed current assets. This negative working capital position suggests the company currently lacks sufficient liquidity to meet short-term obligations. Given the absence of operating history, negative net assets, and limited financial information, the company presents a high credit risk at this stage. Without evidence of capital injection or positive cash flow generation, extending credit is not advisable.

2. Financial Strength:

• Total current assets: £1,240,245
• Current liabilities: £1,366,253
• Net current assets (working capital): -£126,008
• Net assets/shareholders’ funds: -£126,008
  The balance sheet reveals a weak financial position with liabilities exceeding assets. Negative shareholders’ funds demonstrate an equity deficiency, which is a red flag for creditors. The company’s micro-entity status and minimal staff (one director) further indicate a very small scale operation with limited financial resilience.

3. Cash Flow Assessment:
   The accounts do not include a cash flow statement, but the negative working capital infers potential cash flow pressure. Current liabilities exceed current assets, which may indicate reliance on short-term financing or delayed payments to suppliers. The company’s ability to generate positive operational cash flows is unproven, and without additional capital or improved liquidity, risk of insolvency is elevated.

4. Monitoring Points:

• Monitor future filings for improved working capital and net asset position.
• Watch for capital injections or loans from significant controllers (Mile Property Group Ltd and Practice Centre Limited).
• Track any shift in current liabilities structure or overdue payments.
• Review subsequent turnover and profitability to assess operational viability.
• Monitor director conduct and any changes in control or management.