MSM HEXAGON LTD

Executive Summary

MSM Hexagon Ltd shows improving financial strength with increasing net assets and cash reserves, supporting its ability to meet short-term liabilities. The company’s simple structure and stable management provide additional confidence. Monitoring debtor collections and liability growth will be important to maintain liquidity and creditworthiness.

MSM HEXAGON LTD - Analysis Report

Company Number: 14383609

Analysis Date: 2025-07-20 14:39 UTC

1. Credit Opinion: APPROVE
   MSM Hexagon Ltd demonstrates a positive financial trajectory with increasing net current assets and shareholders' funds over its two years of operation. The company maintains a solid liquidity position with cash reserves exceeding current liabilities, indicating capacity to meet short-term obligations. The absence of employees and modest scale suggest low operational complexity and controlled risk. The sole director and significant shareholder appear to provide stable management oversight. No adverse filings or overdue returns are noted, supporting credit reliability.

2. Financial Strength:
   The company's balance sheet shows a steady increase in net current assets from £3,803 as of September 2023 to £9,289 as of September 2024. Shareholders’ funds have similarly increased from £3,803 to £9,289, reflecting retained earnings growth. Current assets (cash and debtors) have nearly tripled, while current liabilities have increased but remain well covered by current assets. No fixed assets are reported, which is typical for an insurance brokerage/mortgage finance intermediary where tangible assets are minimal. Overall, the company's financial strength is sound for its size and business model.

3. Cash Flow Assessment:
   Cash at bank rose from £8,495 to £15,141 over the year, illustrating improved liquidity. Debtor balances increased significantly but remain manageable relative to cash and creditor levels. Current liabilities increased to £15,186 but are still covered by current assets of £24,475, leaving a net working capital surplus of £9,289. The company’s positive working capital and cash position confirm adequate short-term liquidity to cover operational expenses and creditor payments.

4. Monitoring Points:

• Debtor aging and collection efficiency: The rise in debtors warrants monitoring to ensure timely cash conversion.
• Growth in current liabilities: Continued increases should be tracked relative to asset growth to avoid liquidity strain.
• Business scale and diversification: With no employees and a single director/shareholder, watch for operational continuity risks.
• Profitability trends once income statement data is available, as the current accounts omit profit figures.