TWICE (MILTON KEYNES) LTD

Executive Summary

Twice (Milton Keynes) Ltd exhibits significant solvency concerns characterized by sustained negative net assets and long-term liabilities exceeding asset coverage. While the company maintains adequate short-term liquidity and compliance with filings, its small scale and financial position present heightened risk. Further due diligence on creditor terms and operational viability is recommended before considering investment.

TWICE (MILTON KEYNES) LTD - Analysis Report

Company Number: 12417987

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent net liabilities and negative shareholders' funds over multiple years, coupled with long-term liabilities exceeding current assets. This indicates solvency concerns and potential financial distress.

2. Key Concerns:

• Consistent negative net assets: The company has reported net liabilities of £9,332 as of March 2024, deteriorating from previous years, indicating accumulated losses or insufficient capital.
• Long-term creditors outweigh total assets less current liabilities: Creditors due after one year (£21,333) exceed the total assets less current liabilities (£12,001), raising questions about the company’s ability to meet long-term obligations.
• Small scale and limited financial disclosure: As a micro-entity with minimal fixed assets (£4,000) and only two employees, operational scalability and resilience are limited, raising concerns about sustainability.

3. Positive Indicators:

• Current assets exceed current liabilities: Net current assets stand at £8,001, which suggests short-term liquidity is maintained, potentially allowing the company to meet immediate obligations.
• No overdue filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance practices.
• Stable directorship and ownership: The two directors are also the primary shareholders with stable control since incorporation, which may allow for consistent management.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditor arrangements to assess refinancing risk or potential covenant breaches.
• Review cash flow statements and working capital management to verify liquidity beyond balance sheet figures.
• Understand the business model in retail of second-hand goods and its competitive position to assess operational sustainability.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.
• Explore any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.