MV INVESTMENT PROPERTIES LIMITED

Executive Summary

MV Investment Properties Limited is currently financially weak, with negative net assets and significant working capital deficits that impair its ability to service debt. The company’s financial structure is heavily leveraged with minimal equity, and its liquidity position is strained. Credit approval is not recommended without substantial improvement in profitability, liquidity, and equity base.

MV INVESTMENT PROPERTIES LIMITED - Analysis Report

Company Number: 12925419

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE
   MV Investment Properties Limited shows a precarious financial position with persistently negative net assets and shareholders' funds, reflecting an erosion of capital. The company’s liabilities exceed its assets, and there is a significant working capital deficit, indicating inability to cover short-term obligations from current assets. The absence of turnover or profit data and no employees suggest limited operational activity or revenue generation, raising concerns about its capacity to meet debt repayments or new credit facilities without external support.

2. Financial Strength:
   The balance sheet reveals fixed assets (investment properties) valued at approximately £1.2 million, which remain stable over recent years. However, current liabilities exceed £1.2 million, vastly overshadowing current assets of under £24,000, resulting in a net current liability of over £1.2 million. Net assets are slightly negative (-£132 as of 31 March 2024), showing marginal improvement from prior years but still indicating an undercapitalized position. The company relies heavily on creditor funding, with minimal equity invested (£100 share capital).

3. Cash Flow Assessment:
   Cash balances are low (£23,857 at year-end) relative to current liabilities, implying limited liquidity. The sizeable working capital deficit indicates ongoing cash flow stress. The lack of debtors suggests no significant receivables to offset payables. Overall, the company appears reliant on creditor financing or external capital injections to maintain operations. The absence of turnover or profit data further clouds the cash flow outlook, suggesting limited internal cash generation.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios to gauge improvement or deterioration in working capital management.
• Monitor any filings indicating turnover or profit generation to assess operational viability.
• Watch for any changes in director appointments or ownership that might signal restructuring or additional capital support.
• Review timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Assess market conditions affecting investment property values, as these represent the bulk of assets and collateral potential.