MIDUS COMMUNICATIONS LIMITED
Company number 05649942 · 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.
Risk Rating: LOW
Justification: The company demonstrates strong solvency with negligible total liabilities (£14,914) against substantial net assets (£245,480), excellent liquidity with cash covering liabilities over 11 times, and a consistent financial track record spanning nearly a decade. All statutory filings are current and compliant.
Key Concerns
1. Slight decline in net assets and cash: Net assets decreased by ~£4,200 (1.7%) and cash by ~£8,100 (4.5%) year-on-year to 2024. While modest, the direction warrants attention—particularly the elimination of a £5,310 fair value reserve, which may have impacted reported equity.
2. Concentrated control: The sole director, Michael Paul Holden, holds >75% of shares and voting rights. While not inherently problematic, this creates key-person dependency and limited governance oversight.
3. Limited operational visibility: The accounts are unaudited small-company filings; no profit and loss account is provided. Turnover and gross margins are undisclosed, making it difficult to assess revenue stability or cost pressures.
Positive Indicators
- Negligible leverage: Total liabilities are just 5.7% of total assets and consist only of short-term creditors. No bank debt or long-term obligations are present.
- Strong liquidity: Cash at bank (£171,359) alone far exceeds all current liabilities (£14,914), giving a current ratio of nearly 13:1.
- Consistent historical performance: Net assets have grown steadily from £189k (2015) to £245k (2024), with no periods of loss or distress. Filing compliance is impeccable.
Due Diligence Notes
- Investigate the source of the fair value reserve elimination and the ~£4k net asset decline. Request management accounts or dividend history to determine whether profits were distributed.
- Obtain the income statement (not publicly required for small companies) to assess revenue trends, margins, and operational cash generation.
- Inquire about the nature of the £67k investment asset (listed vs unlisted) and its valuation methodology, as this is a material non-cash item.
- Review the sole director’s other directorships and any potential related-party transactions, given the concentrated ownership.
- Examine operating lease commitments (mentioned in accounting policies) to gauge off-balance-sheet liabilities.