MSTY LIMITED

Executive Summary

MSTY LIMITED exhibits a fragile financial position with worsening net liabilities and negative working capital, indicating potential liquidity and solvency challenges. Given its short operational history and micro entity status, the risk of credit default is elevated. Approval of credit facilities is not recommended without substantial mitigating factors or security.

MSTY LIMITED - Analysis Report

Company Number: 14062764

Analysis Date: 2025-07-29 16:51 UTC

1. Credit Opinion: DECLINE
   MSTY LIMITED shows a weakening financial position over the latest reporting period, moving from positive net current assets (£666) in 2023 to a significant net current liabilities position (-£411) in 2024. Net liabilities have increased from -£739 to -£1,816, indicating deteriorating equity and financial stress. The company’s micro entity status and limited operating history since incorporation in 2022 reduce the confidence in its ability to service any new credit facilities. The negative working capital and net liabilities suggest a heightened risk of default or inability to meet short-term obligations without additional capital injection.

2. Financial Strength:
   The company’s balance sheet reveals very low current assets (£53) compared to current liabilities (£464) as at 30 April 2024. Fixed assets are negligible or not reported. Accruals and deferred income (£1,405) also weigh on the liabilities side, further weakening the net asset position. Shareholders’ funds are deeply negative (-£1,816), reflecting accumulated losses or insufficient capital. The consistency in low employee numbers (3) and micro entity classification limits scale and diversification, constraining financial resilience.

3. Cash Flow Assessment:
   With current liabilities outstripping current assets and a negative net working capital position, MSTY LIMITED likely experiences liquidity constraints. The absence of cash or cash equivalents in the current assets figure and increased creditors suggest tight operating cash flow. Without significant external funding or improved operational cash generation, the company’s ability to meet immediate financial commitments is questionable.

4. Monitoring Points:

• Improvement or further deterioration in net current assets and net liabilities in subsequent filings.
• Cash flow from operations and any capital injections or loans from shareholders/directors.
• Timeliness and completeness of future accounts and confirmation statement filings to assess ongoing compliance and financial transparency.
• Directors’ actions towards restructuring or improving working capital and profitability.