MZ9 SPORTS LTD

Executive Summary

MZ9 Sports Ltd is a micro-entity with improving net asset position but ongoing negative working capital. While regulatory compliance and stable ownership are positive, liquidity challenges and limited operational history warrant further investigation into cash flow and business viability before investment. The company's financials suggest medium risk at this stage.

MZ9 SPORTS LTD - Analysis Report

Company Number: 13644782

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: MEDIUM
   MZ9 Sports Ltd shows improving net assets and reduced net current liabilities in its latest financial year, but persistent negative working capital and modest scale suggest potential liquidity pressures.

2. Key Concerns:

• Negative Net Current Assets: The company has a net current liability position (£-9,862 in 2024), indicating short-term obligations exceed current assets, which can signal liquidity stress.
• Small Scale and Limited Financial History: Incorporated in late 2021 and classified as a micro-entity, the company has limited operational and financial history to demonstrate sustainability.
• Concentrated Ownership and Control: Two directors each hold 25-50% shares and voting rights, indicating concentrated control which can impact governance and decision-making transparency.

3. Positive Indicators:

• Improving Net Assets: Net assets have increased from £4,979 in 2021 to £18,780 in 2024, reflecting capital injection or retained earnings growth.
• No Overdue Filings: Accounts and confirmation statements are up to date, showing regulatory compliance and good administrative discipline.
• Stable Management Team: The same two directors have held their positions since incorporation, suggesting consistency in leadership.

4. Due Diligence Notes:

• Review the company’s cash flow statements and creditor payment terms to assess liquidity management beyond balance sheet snapshots.
• Investigate the nature of current liabilities and any contingent liabilities or off-balance sheet exposures.
• Evaluate revenue streams, client contracts, and market positioning within the "Other sports activities" SIC code to understand operational sustainability.
• Clarify the relationship and roles of the two main shareholders/directors and assess any related party transactions.
• Confirm absence of any director disqualifications or regulatory sanctions beyond the Companies House data.