MSSK LIGHT HAULAGE LTD.

Executive Summary

MSSK Light Haulage Ltd evidences significant financial decline with minimal net assets and constrained liquidity, primarily due to increasing liabilities and falling cash reserves. The company exhibits a weak capacity to service debt and sustain operations, leading to a credit decline recommendation. Close monitoring of cash flow and debt reduction strategies is essential should the company’s circumstances improve.

MSSK LIGHT HAULAGE LTD. - Analysis Report

Company Number: 12521490

Analysis Date: 2025-07-29 17:28 UTC

1. Credit Opinion: DECLINE MSSK Light Haulage Ltd shows a concerning deterioration in financial strength over recent years. The net assets have declined sharply from £33,347 in 2020 to just £995 in 2024, indicating erosion of equity and financial buffer. The company has a negative trend in working capital and net current assets, which have shrunk significantly. Current liabilities remain high relative to current assets and cash, signalling liquidity pressure. The presence of hire purchase debt both short and long term further strains cash flow. Overall, the company’s ability to meet debt obligations and sustain operations from internal cash generation is weak, warranting a decline on credit grounds.

2. Financial Strength:

• Net assets have declined from £33,347 (2020) to £995 (2024), reflecting accumulated losses or asset write-downs.
• Fixed assets have decreased from £37,905 (2023) to £22,670 (2024), possibly due to disposals.
• Deferred tax provisions have reduced but still represent a material liability (£4,307 in 2024).
• Hire purchase obligations total £26,560 (current + non-current), indicating significant leveraged asset financing.
• Shareholders’ funds are minimal at £995, providing little equity cushion.

3. Cash Flow Assessment:

• Cash balances have dropped from £31,979 (2021) to £3,398 (2024), severely limiting liquidity.
• Trade debtors have increased but are partially offset by other debtors; however, current liabilities remain high at £15,808.
• Net current assets are positive but very modest (£1,384), suggesting tight working capital and potential liquidity constraints.
• The company’s operating cash flow is likely challenged by hire purchase repayments and other liabilities.
• No detailed profit and loss or cash flow statement provided, but balance sheet trends indicate cash flow stress.

4. Monitoring Points:

• Watch cash balances and net current assets closely for further deterioration.
• Monitor the company's ability to reduce hire purchase debt or refinance on favourable terms.
• Track trade debtor collections to ensure cash inflows support operational needs.
• Observe any changes in deferred tax liabilities or new provisions.
• Review management actions to improve profitability and rebuild equity.