CF CREATIVE CONSULTANCY LTD

Executive Summary

CF Creative Consultancy Ltd shows signs of liquidity stress and declining equity during the latest financial year, warranting caution. However, the company remains compliant with filing requirements and continues trading as a small-scale entity under sole ownership. Further investigation into cash flows and governance is recommended to fully assess financial stability and operational sustainability.

CF CREATIVE CONSULTANCY LTD - Analysis Report

Company Number: SC683109

Analysis Date: 2025-07-29 18:50 UTC

1. Risk Rating: MEDIUM
   The company exhibits a recent decline in liquidity with net current liabilities reported for 2024, raising concerns about short-term solvency despite positive net assets. The micro-entity status and small scale limit financial disclosure but show a working business with maintained filings and no overt regulatory issues.

2. Key Concerns:

• Liquidity deterioration: Net current liabilities of £702 in 2024 compared to net current assets of £6,214 in 2023 indicate a significant working capital squeeze that could impact meeting short-term obligations.
• Declining net assets: Net assets decreased notably from £6,330 in 2022 to £1,113 in 2024, suggesting erosion of equity possibly due to losses or asset write-downs.
• Concentration of control: Single shareholder/director owning 75-100% of shares and voting rights implies governance risks, including lack of independent oversight.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue returns or penalties.
• Consistent operation: The company has been active since 2020 with stable employee count and continues to trade within its niche SIC classifications.
• Modest fixed assets growth: Fixed assets increased from £860 in 2023 to £2,215 in 2024, potentially indicating investment in operational capacity.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in current assets and increase in current liabilities in 2024, including cash flow statements if available.
• Review the profit and loss account or management accounts to determine whether operational losses or extraordinary items contributed to reduced net assets.
• Assess the director’s background and governance practices given the sole control and examine any potential related party transactions or conflicts of interest.
• Confirm whether the company’s business model and client base remain stable and sustainable despite financial fluctuations.
• Verify if there are any contingent liabilities or off-balance sheet risks not captured in micro-entity accounts.