GINGER MISCHIEF EVENTS LIMITED

Executive Summary

Ginger Mischief Events Limited presents a low financial risk profile with stable net assets and strong liquidity, supported by timely filings and compliance. However, limited financial disclosures and a very small operational scale warrant further investigation into profitability and business sustainability. Overall, the company appears solvent and compliant, but deeper financial and operational due diligence is recommended.

GINGER MISCHIEF EVENTS LIMITED - Analysis Report

Company Number: 13104326

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: LOW

Justification: The company demonstrates a stable financial position with positive net assets and net current assets across the past four years. There are no overdue filings or compliance issues, and the company is actively filing accounts and confirmation statements on time. The micro-entity status limits the complexity and size of the business, reducing risk exposure.

2. Key Concerns:

• Modest scale of operations: With only two employees and micro-entity classification, the business scale is limited, which may affect growth potential and operational flexibility.
• Limited financial disclosures: The company has elected not to provide a profit and loss account, limiting insight into profitability, cash flow, and operational efficiency.
• Small fixed asset base: Fixed assets remain very low, indicating minimal investment in long-term operational infrastructure, which could constrain business expansion or resilience.

3. Positive Indicators:

• Strong liquidity position: Current assets significantly exceed current liabilities (approximately 4:1 ratio), indicating good short-term liquidity and ability to meet current obligations.
• Positive and stable shareholders’ funds: Shareholders’ funds have remained positive and relatively stable around £30,000 over several years, showing sustained equity backing.
• Compliance and governance: Timely filing of accounts and confirmation statements with no overdue returns suggests good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Request detailed profit and loss statements and cash flow reports to assess operational profitability and cash generation.
• Review contracts or client base to understand revenue stability and growth prospects.
• Confirm the nature of current assets to ensure they are primarily cash or receivables rather than inventory or less liquid items.
• Investigate the directors’ background and experience given the small team size and key decision-making roles.
• Assess any contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.