Company Number: 12571527

Analysis Date: 2025-07-19 12:15 UTC

1. Risk Rating: LOW
   Douglas Creative Limited demonstrates a solid financial position with net current assets increasing notably to £127,470 as of 31 August 2024, a strong cash balance of £632,956, and positive shareholders’ funds of £301,922. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• The company’s rapid fixed asset growth (£174,452 net book value) alongside significant depreciation charges (over £58k in the latest year) could indicate capital expenditure that requires monitoring to ensure it generates adequate returns.
• The relatively high current liabilities (£582,152) require ongoing management to avoid liquidity strain despite the current positive working capital position.
• A drop in employee numbers from 8 to 6 may signal operational adjustments or cost-cutting that could impact business stability.

3. Positive Indicators:

• Strong liquidity profile with cash representing approximately 86% of current assets, supporting the company’s ability to meet short-term obligations.
• Consistent growth in net assets and retained earnings over recent years, suggesting profitability and capital retention.
• Timely filing of accounts and confirmation statements, indicating good regulatory compliance and governance.
• The director, Mr. Mark Andrew Douglas, has been continuously in position since incorporation with no adverse records noted.

4. Due Diligence Notes:

• Examine the nature and strategic rationale behind the significant additions to tangible fixed assets in the latest financial year and assess asset utilization and return on investment.
• Review the composition and terms of current liabilities to evaluate any concentration or refinancing risks.
• Investigate the reason for the reduction in employee numbers and any impact on operational capacity or service delivery.
• Confirm the absence of any contingent liabilities or off-balance sheet commitments not disclosed in abridged accounts.
• Consider obtaining more detailed profit and loss information, as only abridged balance sheets are filed, limiting insight into operational profitability and cash flow dynamics.