MYBUS C.T. LIMITED

Risk Rating: MEDIUM Justification: While the company remains solvent with positive net assets and a long history of active trading, the latest financial year reveals a severe contraction in working capital and a significant reduction in headcount. The sudden more-than-doubling of current liabilities, combined with a 62.5% drop in employee numbers, raises immediate questions about operational continuity and short-term liquidity that require closer scrutiny.

Key Concerns: - Severe Liquidity Contraction: Net current assets have fallen dramatically from £19,351 in 2024 to just £2,161 in 2025. This was driven by current liabilities more than doubling (from £10,618 to £22,663) while current assets slightly declined. This leaves a very thin margin for covering short-term obligations. - Significant Workforce Reduction: The average number of employees dropped from 8 in 2024 to 3 in 2025. For a company operating in the passenger land transport sector, a reduction of this magnitude suggests a major scaling back of operations, loss of contracts, or a shift in business model that could impact future revenue generation. - Fixed Asset and Liability Correlation: Fixed assets increased from £1,096 to £9,016, suggesting an asset acquisition (likely a vehicle). However, this appears to coincide with the large increase in current liabilities, raising the possibility that the asset was funded by short-term debt rather than long-term financing, which places immediate strain on cash flow.

Positive Indicators: - Long-term Solvency Improvement: Despite the recent dip, the company has successfully transitioned from a negative net asset position of (£3,008) in 2017 to a positive position of £10,232 in 2025, demonstrating an ability to recover and stabilize over the long term. - Regulatory Compliance: The company is fully up to date with its filing requirements. Accounts for the year ending 30 June 2025 were approved and signed on 4 May 2026, well ahead of the deadline, and the confirmation statement is not overdue. - Governance Structure: As a company limited by guarantee with five active directors and a clearly declared Person with Significant Control (PSC), the entity has a broader governance structure than typical micro-entities, which can provide operational resilience and oversight.

Due Diligence Notes: - Composition of Current Liabilities: It is critical to determine whether the £22,663 in current liabilities represents trade creditors, short-term loans, or deferred income (such as advance grant payments). The company previously held £5,649 in accruals and deferred income in 2024, which dropped to £945 in 2025; understanding if this liability shift is related is essential. - Operational Capacity: Investigate the reason behind the workforce reduction from 8 to 3 employees. Determine if the company has outsourced its transport operations, lost a key contract, or replaced staff with the newly acquired fixed asset. - Funding Model: Given the "limited by guarantee" structure and the community-transport nature of the SIC code (49390), assess the company's reliance on grants or local authority contracts versus commercial fare revenue, and confirm the security of these income streams going forward.