Company Number: 13626699

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: DECLINE
   Event House Ltd demonstrates significant financial distress with net liabilities increasing substantially from -£13k to -£83k over one year. The current liabilities of £98k greatly exceed current assets and prepayments combined (£12,747), indicating poor liquidity and inability to cover short-term obligations. The company is a micro-entity with minimal fixed assets and only one employee, limiting operational scale and resilience. The sharp increase in current liabilities without corresponding asset growth raises concerns about cash flow management and financial stewardship. The recent director change may signal internal issues but offers limited assurance of improved governance at this stage. Given these factors, extending credit would be high risk without substantial guarantees or corrective business plans.

2. Financial Strength:
   The balance sheet shows a worsening financial position. Net assets deteriorated from positive £4.4k at incorporation to deeply negative £82.9k in 2024, mainly driven by current liabilities ballooning from £9k in 2021 to £98k in 2024. Fixed assets remain minimal (£2.5k), indicating limited collateral value. The company’s equity base is negative, reflecting accumulated losses or unpaid debts. Such leverage and weak equity erode financial stability and reduce buffer against operating setbacks.

3. Cash Flow Assessment:
   Current assets (£9,997) and accrued income/prepayments (£2,750) are insufficient to meet current liabilities (£98,138), resulting in a substantial negative net working capital (-£85,391). This signals a liquidity crisis and inability to meet immediate debts or supplier payments without refinancing or cash injections. The absence of audited profit and loss data limits cash flow visibility, but working capital metrics alone suggest poor short-term financial health.

4. Monitoring Points:

• Track changes in current liabilities and working capital to detect worsening liquidity.
• Monitor director changes and any related impact on governance or business strategy.
• Review future filed accounts for turnover and profitability trends to assess operational viability.
• Watch for overdue filings or signs of insolvency proceedings.
• Assess any external financial support or capital injections that may improve solvency.