MS2C ACQUISITIONS LIMITED

Executive Summary

MS2C Acquisitions Limited is a newly formed investment property company with a weak financial position characterized by negative net assets and significant current liabilities exceeding current assets. The company relies heavily on unsecured, interest-free loans from related parties and has no operational trading history, leading to concerns about its ability to meet short-term obligations and service external credit. At this stage, external credit approval is not recommended without substantial mitigating factors or guarantees.

MS2C ACQUISITIONS LIMITED - Analysis Report

Company Number: 15550881

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: DECLINE

MS2C Acquisitions Limited is a newly incorporated entity (March 2024) operating in investment property acquisition and development. The company’s first financial statements, covering a partial period to December 2024, show significant current liabilities (£311,858) exceeding current assets (£106), resulting in a large net current liability position (-£311,752). The overall net asset position is negative at -£1,808 with shareholders’ funds also negative (-£1,908). The company is dependent on related party loans amounting to £264,600, which are unsecured, interest-free, and repayable on demand, adding liquidity risk. There is no trading history or profit generation to assess operational cash flow or repayment capacity. The directors state intention to support the business going forward, but this is not a guarantee of financial sustainability. Given the negative equity, liquidity shortfall, reliance on connected party funding, and early stage of business with no earnings record, the company currently lacks the financial strength and creditworthiness to support external lending or trade credit without significant conditions or guarantees.

2. Financial Strength:

• Fixed assets primarily consist of investment property valued at £309,944.
• Current liabilities are high relative to current assets, showing poor working capital management or initial funding structure.
• Negative net assets and shareholders’ funds indicate an undercapitalized position.
• The balance sheet reflects an early stage company with a reliance on related party funding.
• No evidence of profitability or retained earnings; the company reports accumulated losses.
• No audit performed, and accounts are unaudited, limiting reliability.
• Given the industry (real estate investment), asset values may be subject to market fluctuations and valuation risk.

3. Cash Flow Assessment:

• Current assets are minimal (£106), mainly debtors, with no cash balance disclosed.
• Current liabilities are dominated by other loans and amounts owed to participating interests, both unsecured and repayable on demand.
• The company’s liquidity position is weak, with net current liabilities of £311,752.
• The lack of operational cash flow and dependence on shareholder or related party support raises concerns about the ability to meet short-term obligations.
• No financial statements include an income statement, so cash flow from operations cannot be assessed.
• The company’s going concern statement is based on director support rather than demonstrated cash flow.

4. Monitoring Points:

• Track subsequent filings for improvements in liquidity, profitability, and net asset position.
• Monitor related party loans for repayment terms or conversions to equity.
• Watch for any material changes in investment property valuations.
• Review director conduct and any changes in management or control.
• Assess any external borrowing or credit facilities taken up and repayment performance.
• Monitor industry conditions for real estate investment affecting asset values.
• Ensure timely filing of accounts and confirmation statements to mitigate regulatory risk.