M&S MOTOR SERVICES LTD

Executive Summary

M&S MOTOR SERVICES LTD’s most recent accounts reveal a marked deterioration in financial health, with net liabilities and negative working capital raising solvency and liquidity concerns. While regulatory filings are up to date and management stable, the lack of detailed audited accounts limits insight. Careful further investigation is warranted before considering investment.

M&S MOTOR SERVICES LTD - Analysis Report

Company Number: 13660879

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company displays a significant deterioration in its financial position in the latest year, moving from a positive net asset position (£309) in 2023 to a negative net asset and net current asset position (-£1,067 and -£2,709 respectively) in 2024. This indicates potential solvency and liquidity issues that are material and concerning for investors.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net liabilities suggest it may struggle to meet short-term obligations, increasing insolvency risk.
• Declining Current Assets and Increasing Current Liabilities: Current assets dropped by over a third from £4,811 to £2,985, while current liabilities increased from £4,502 to £5,694, worsening liquidity.
• Lack of Audit and Limited Disclosure: As a micro-entity exempt from audit, the financial information lacks external verification and detailed notes, limiting transparency and increasing risk.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, which suggests good governance on regulatory matters.
• Stable Ownership and Management: The sole director and 75-100% shareholder has been in place since incorporation, providing stability in leadership.
• Small Scale Operations: As a micro-entity with only two employees, operational complexity and overheads are likely low, potentially allowing for easier management of costs.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and the increase in liabilities in the latest financial year.
• Review cash flow statements if available or request management accounts to assess liquidity trends and cash burn rate.
• Understand the business model and revenue generation capacity, especially given the SIC codes related to freight transport and vehicle maintenance.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not disclosed.
• Evaluate the director’s plans to restore financial stability and whether additional capital injections or restructuring are anticipated.