MTH ROOFING AND BUILDING SERVICES LTD

Executive Summary

MTH Roofing and Building Services Ltd exhibits improving financial health with enhanced net assets and working capital, supported by good regulatory compliance. Nevertheless, the sharp rise in long-term liabilities and minimal equity base present medium solvency and liquidity risk concerns. Further inquiry into debt structure and operational sustainability is recommended to fully gauge investment risk.

MTH ROOFING AND BUILDING SERVICES LTD - Analysis Report

Company Number: 13119964

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: MEDIUM
   MTH Roofing and Building Services Ltd shows a positive trajectory in net assets and working capital over recent years, which supports solvency. However, the presence of long-term creditors rising significantly in the latest accounting period and a relatively low share capital raise potential concerns. The company is micro-sized and newly incorporated (2021), so limited financial history constrains full risk assessment.

2. Key Concerns:

• Increase in Long-Term Liabilities: Creditors falling due after one year increased sharply from £1,931 in 2024 to £18,729 in 2025, indicating growing long-term debt exposure that requires careful servicing.
• Low Share Capital: The company has only £1 in share capital, which might limit the equity buffer available to absorb losses or support growth.
• Limited Operational Scale and History: With an average of one employee and incorporation in 2021, the company’s operational stability is unproven and may be vulnerable to market or operational shocks.

3. Positive Indicators:

• Improving Net Assets and Working Capital: Net assets more than doubled from £23,437 to £45,419, and net current assets increased from £12,138 to £34,674, indicating improved liquidity and solvency positions over the last year.
• Timely Filing Compliance: No overdue accounts or confirmation statements, which reflects good regulatory compliance and governance discipline.
• Controlled Ownership and Management: Shareholding and directorship consolidated under a single individual (Mr. Mathew Rhys Jones), which may facilitate decisive management and governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased long-term liabilities to assess repayment risk and covenant obligations.
• Review detailed cash flow statements (not provided) to confirm liquidity status beyond balance sheet snapshots.
• Confirm operational contracts, client base, and revenue trends to evaluate sustainability given the small workforce and micro company status.
• Verify no director disqualifications or adverse regulatory actions exist beyond the data provided, especially given the changes in directorship.