Company Number: 12511994

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: DECLINE
   Ambient Media 360 Ltd demonstrates significant financial weakness with a net current liabilities position worsening from £-17.2k in 2023 to £-16.3k in 2024 and a very low net asset base of only £699 as of March 2024, down from £3,643 the prior year. The decline in equity and persistent negative working capital indicate poor liquidity and an inability to comfortably cover short-term obligations. The company operates in a niche pre-press and pre-media sector with minimal scale (micro-entity category) and only one employee. While the director maintains full control, the financials show a deteriorating balance sheet with creditors due after one year almost matching total assets less current liabilities (£33.7k vs £34.4k), raising concerns about solvency risk and business resilience. Given the limited financial buffers, the company appears unable to reliably service debt or absorb shocks.

2. Financial Strength:
   The balance sheet reveals low fixed assets (£50.8k) and declining shareholders’ funds (£699 in 2024 vs £3,643 in 2023). Net current liabilities remain substantially negative, indicating working capital deficiency. The company’s total liabilities due after more than one year are nearly equal to total assets less current liabilities, leaving negligible net assets. The small share capital (£1) reflects minimal equity injection. Overall, the financial strength is weak, with insufficient equity and negative liquidity trends undermining financial stability.

3. Cash Flow Assessment:
   Current assets (£15.8k) mainly comprise cash and receivables but are insufficient to cover current liabilities (£33.7k), resulting in negative net current assets of £16.3k. This working capital deficit suggests cash flow strain and potential difficulty in meeting short-term liabilities without external support. The company’s micro classification and single-employee structure imply limited operational scale to generate substantial cash flow. No audit was performed, and profit/loss figures are unavailable, but the trend in balance sheet items points to ongoing liquidity pressure.

4. Monitoring Points:

• Monitor net current assets and liquidity ratios closely for any improvement or further deterioration.
• Track creditor ageing and any late payment trends affecting supplier relationships.
• Review future filings for profitability indicators and cash flow statements when available.
• Assess director’s plans for strengthening capital or reducing liabilities to improve solvency.
• Watch for any late filings or compliance issues that might signal operational distress.