Investment Risk Analysis: M A COOPER PROJECTS LIMITED

1. Risk Rating: MEDIUM

Justification: The company demonstrates consistent profitability and strong cash generation, with net assets tripling from approximately £230k (2017) to £750k (2025). However, the most recent financial year reveals a near-doubling of total liabilities (from £1.54M to £2.95M) alongside significant debtor growth, raising questions about the quality and sustainability of this expansion. The absence of identified Persons with Significant Control and the original incorporation under a different name ("HICORP 44 LIMITED") add governance transparency concerns.

2. Key Concerns

Concern 1: Rapid Liability Growth Outpacing Revenue Visibility

Total liabilities increased from £1,544,513 (2024) to £2,951,408 (2025) — a 91% increase in a single year. Current liabilities of £2.95M against current assets of £3.76M yields a current ratio of approximately 1.27:1, which is adequate but tightening. Without visibility into turnover (the income statement is not filed under small company exemptions), it is impossible to assess whether this liability growth is proportionate to revenue expansion or represents deteriorating leverage.

Concern 2: Significant Debtor Concentration Risk

Debtors increased from £1,425,553 to £1,673,616 (17.4% growth). For an electrical installation contractor, this level of receivables relative to total assets (44.5%) is substantial. The construction and installation sector typically carries higher debtor risk due to retention clauses, staged payments, and potential dispute over completed works. Without an aged debtor analysis or bad debt provision details beyond the £134,689 general provision, recoverability remains uncertain.

Concern 3: PSC Register Incomplete

The PSC register shows only a "Persons with significant control statement" rather than identifying actual individuals. For a company with five directors and over £3.7M in assets, the failure to identify and register PSCs — a requirement since 2016 — represents a regulatory compliance gap. This lack of transparency regarding ultimate ownership is a material concern for institutional investors requiring clear beneficial ownership chains.

3. Positive Indicators

Strong Cash Generation

Cash at bank increased from £909,417 (2024) to £2,087,032 (2025), a 129% increase. This represents 55.5% of total assets, providing substantial liquidity headroom. The company clearly generates significant operating cash flow, which is the most critical indicator of business viability.

Consistent Equity Growth

Shareholders' funds have grown every year since 2018, from £241,416 to £750,426 — demonstrating sustained retained profitability over a seven-year period. This trajectory suggests genuine operational earnings rather than one-off gains or asset revaluations.

Regulatory Compliance on Filings

Accounts are filed on time (not overdue), confirmation statements are current, and the company has maintained active status throughout its 16-year history. The accounts are prepared under FRS 102 Section 1A with proper small company exemptions claimed.

Moderate Leverage Structure

Long-term liabilities (£190,698) and provisions (£134,689) are modest relative to the asset base. The net assets of £750,426 against total assets of £3,760,648 gives a debt-to-assets ratio of approximately 78.5%, which, while elevated, is not unusual for a contracting business with significant working capital requirements.

4. Due Diligence Notes

Priority Investigations:

a) Turnover and Profitability The company files under the small companies regime, meaning no profit & loss account is publicly available. Request management accounts to understand: - Whether the 91% liability increase reflects genuine revenue growth or balance sheet restructuring - Operating margins and trends - Contract pipeline and forward order book

b) Debtor Quality and Aging Given debtors represent £1.67M (44.5% of total assets), obtain: - Aged debtor schedule - Top 10 customer concentrations - Retention balances held by clients - Bad debt history and write-offs

c) Liability Composition The breakdown between trade creditors, accruals, and other current liabilities is not visible in the filleted accounts. Understand: - How much relates to trade payables vs. subcontractor costs vs. tax obligations - Whether the liability growth reflects normal trading cycle expansion or deferred obligations

d) PSC Identification Clarify why no PSCs are registered. With five directors, ownership must reside somewhere. Request: - Shareholder register - Confirmation of who holds the 400 allotted £1 shares - Any shareholder agreements or voting arrangements

e) Related Party Transactions Five directors for a company of 58 employees is above average. Investigate: - Whether directors are also shareholders or connected to subcontractors/suppliers - Any director loans or related party balances (not visible in filleted accounts) - Compensation arrangements

f) Original Incorporation as HICORP 44 LIMITED The company was incorporated as "HICORP 44 LIMITED" and renamed within three months. This naming pattern is consistent with formation agents creating shell companies for sale. Clarify: - Who the original subscribers were - Whether any pre-incorporation obligations exist

g) Provisions The £134,689 in provisions requires clarification — whether this relates to onerous contracts, warranty obligations, or other contingent liabilities typical in electrical installation work.