MATHERS FOUNDRY LIMITED
Company number 06699179 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: MATHERS FOUNDRY LIMITED
1. Credit Opinion: DECLINE
Reasoning: This company ceased operations in 2017 and has no revenue-generating business. It is a non-trading shell incurring only administrative expenses, with accumulated losses of £3.26 million against share capital of £3.5 million. The going concern basis relies entirely on "parental support" rather than operational cash flows. There is no trading activity, no revenue, and no operational capacity to service any credit facility. Lending to a dormant entity with no income stream and eroding cash reserves represents unacceptable credit risk.
2. Financial Strength
Balance sheet is technically solvent but fundamentally impaired:
| Metric | 2025 | 2024 | Movement |
|---|---|---|---|
| Net Assets | £237,896 | £282,760 | -£44,864 |
| Cash | £253,070 | £296,958 | -£43,888 |
| P&L Reserve | (£3,262,104) | (£3,217,240) | -£44,864 |
| Share Capital | £3,500,000 | £3,500,000 | No change |
- Accumulated losses consume 93% of paid-up share capital – the business has destroyed nearly all shareholder value
- Net assets are declining at approximately £44,864 per year (administrative costs with no offsetting income)
- At current burn rate, cash reserves would be exhausted within approximately 5-6 years
- No fixed assets – the company holds only debtors (£43) and cash
- Current liabilities of £15,217 are modest and easily covered by cash
Assessment: The balance sheet shows a company in managed decline with no prospect of value recovery through operations.
3. Cash Flow Assessment
No operational cash generation – pure cash consumption:
- Revenue: £NIL for both 2025 and 2024
- Operating Loss: £44,864 (2025) vs £28,853 (2024) – losses accelerating by 56%
- Cash outflow: £43,888 reduction year-on-year
- Exceptional items: £9,257 credit in 2024 (none in 2025)
The company is burning cash with no mechanism to replenish it. Administrative expenses (likely professional fees, audit costs, filing fees) are the only activity. Without parental support, the company cannot meet obligations as they fall due.
Working Capital: Technically adequate at present (£237,896 net current assets), but this is a depleting resource, not a trading working capital position.
4. Monitoring Points
If any facility were ever considered (which should not be the case without parent guarantee), the following would require ongoing scrutiny:
- Parental support confirmation – Obtain legally binding commitment from parent entity confirming willingness to fund ongoing costs; verbal assurances are insufficient
- Cash runway – Track monthly cash position; at current burn rate, liquidity deteriorates by ~£3,700/month
- Purpose of maintaining the company – Understand strategic rationale (IP holding, regulatory, pending sale?) to assess if parent will continue funding
- Creditor levels – Monitor trade/other creditors for any increase suggesting unpaid obligations
- Filing compliance – Ensure continued timely filing; accounts are currently up to date
- Director activity – Both directors are Indian nationals; monitor for any disqualification proceedings or resignation