MZ SCAFFOLDING GROUP LTD

Executive Summary

MZ Scaffolding Group Ltd shows a modest but improving financial position typical of a micro-entity in the construction sector. While the company is solvent with no overdue filings, its limited asset base and small scale suggest limited financial resilience. Further analysis of cash flows and operational performance is recommended to confirm sustainability.

MZ SCAFFOLDING GROUP LTD - Analysis Report

Company Number: 12625248

Analysis Date: 2025-07-29 14:45 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position as of the latest accounts with no current liabilities, which is a good solvency indicator. However, the micro-entity scale, limited current asset base (£2,450), and historically negative net assets in the prior year raise some concerns about operational scale and liquidity resilience.

2. Key Concerns:

• Liquidity Constraints: The current assets are minimal (£2,450) with no current liabilities, suggesting very limited working capital and potential cash flow vulnerability if unexpected expenses arise.
• Operational Scale and Sustainability: The company is classified as a micro-entity with very modest financial figures and only 10 employees, which may limit its ability to absorb shocks or expand operations sustainably.
• Equity Base and Capitalization: Share capital is nominal (£1.00), and net assets are low, indicating limited equity buffer to support growth or withstand financial stress.

3. Positive Indicators:

• Improved Financial Position: The company moved from negative net assets (-£785) in 2023 to positive net assets (£2,450) in 2024, indicating recent improvements in financial health.
• Compliance and Timely Filings: No overdue filings or accounts, which reflects sound governance and regulatory compliance.
• Stable Control Structure: Single director and majority shareholder with full control provides clear decision-making authority and continuity.

4. Due Diligence Notes:

• Verify the nature and liquidity of current assets (£2,450) to confirm they are readily convertible to cash for operational needs.
• Assess recent trading performance and cash flow statements (if available) to gauge operational sustainability beyond balance sheet snapshots.
• Investigate contracts, client base, and market position within the domestic construction sector to understand revenue stability and growth prospects.
• Confirm no undisclosed contingent liabilities or off-balance sheet risks that could impact solvency.
• Review director background and any related party transactions given sole control and ownership.