Company Number: 14123361

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: MEDIUM
   MSW Solutions Ltd demonstrates a basic operational structure with micro-entity accounts and no overdue filings, which supports compliance and governance. However, the sharp decline in net assets from £7,852 in 2023 to £1,809 in 2024, combined with a significant increase in long-term liabilities, raises concerns about solvency and financial stability.

2. Key Concerns:

• Declining Net Assets and Equity: The company’s net assets have dropped substantially within one year, indicating potential erosion of shareholder value and financial strength.
• Increase in Long-Term Creditors: Creditors due after one year have increased from £3,525 to £12,335, suggesting growing obligations that may pressure future cash flows.
• Limited Scale and Financial Transparency: As a micro-entity with minimal disclosures and only two employees, there is limited insight into operational sustainability and profitability.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Positive Net Current Assets: Despite long-term liabilities, the company maintains positive net current assets (£14,144), indicating short-term liquidity is currently adequate.
• Established Control Structure: Clear identification of Persons with Significant Control (PSCs) and stable directorship with no disqualifications reported.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities that have increased markedly in the latest year.
• Review profit and loss statements or internal management accounts (not provided) to assess operational performance and cash flow trends.
• Understand the business model and contracts under SIC code 43290 (Other construction installation) to evaluate demand sustainability and market risks.
• Confirm no undisclosed contingent liabilities or related party transactions given the close control by two directors.