Company Number: 14156688

Analysis Date: 2025-07-29 20:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Gain Media Limited is an active private limited company engaged in management consultancy. The company is relatively new (incorporated 2022) and shows modest net assets (£3,490 as of June 2025) with positive working capital. However, net assets remain low and current liabilities increased notably in the latest year, primarily due to taxation and social security costs. This suggests some pressure on short-term liquidity. The company’s cash position improved to £50,503, which supports liquidity but the overall financial scale is small and vulnerable. Approval is recommended with conditions requiring monitoring of cash flow and liabilities, particularly tax obligations.

2. Financial Strength:
   The balance sheet indicates very limited fixed assets (£1,757) and net assets of only £3,490, reflecting a small equity base. The company’s net current assets decreased from £17,542 in 2024 to £14,736 in 2025, primarily driven by an increase in current liabilities to £35,767 (from £11,893), dominated by tax and social security creditors. Long-term creditors declined slightly to £13,003. Shareholders’ funds are minimal, which limits the company’s buffer against adverse events. Overall, the financial structure is weak but currently stable given the company’s small scale and nature of business.

3. Cash Flow Assessment:
   Cash on hand increased from £29,435 to £50,503, indicating improved liquidity. This is a positive sign given rising liabilities. The positive net current assets confirm that the company can cover short-term debts, but the significant jump in current liabilities warrants caution. There is no evidence of employees or payroll costs, which may reduce operational cash outflows. The company appears able to meet immediate obligations but should maintain close cash flow management to avoid liquidity strain.

4. Monitoring Points:

• Monitor the trend in current liabilities, particularly tax and social security payables, to ensure these do not escalate further.
• Track cash reserves relative to liabilities to confirm liquidity is maintained.
• Review profit generation and any changes in working capital to assess ongoing operational performance.
• Watch for any director changes or unusual transactions given the company’s small scale and limited financial cushion.
• Ensure timely filing of accounts and returns to avoid regulatory penalties or distress signals.