Company Number: 14633624

Analysis Date: 2025-07-29 13:24 UTC

1. Risk Rating: MEDIUM
   Justification: Kram Media Ltd is an active private limited company incorporated recently in 2023, with modest net current assets (£1,738) and minimal cash (£79). The company shows positive working capital but very limited financial resources and a single director/employee, which presents some operational and liquidity risks typical for a micro-entity in its startup phase.

2. Key Concerns:

• Liquidity Risk: The company has only £79 in cash but £14,341 in current liabilities, indicating potential cash flow constraints despite positive net current assets driven largely by debtors. Collection of receivables is critical to meet short-term obligations.
• Operational Stability: Being a one-person operation with one director and no employees, business continuity and scalability risks exist. Dependence on a single individual for management and execution may affect sustainability.
• Limited Financial History and Scale: The company has just over one year of trading history with very low asset and equity base (£1,738 net assets), limiting the ability to absorb shocks or invest for growth.

3. Positive Indicators:

• Current Financial Compliance: No overdue filings or accounts, indicating adherence to statutory requirements and regulatory compliance.
• Positive Net Current Assets: Despite limited cash, the company maintains positive working capital supported by trade and other debtors, suggesting that revenues have been generated and are collectible.
• Clear Ownership and Control: The sole director, Mr. Mark Maciver, holds 75-100% ownership and voting rights, simplifying decision-making and governance.

4. Due Diligence Notes:

• Verify the collectability of trade and other debtors (£16,000) to ensure liquidity assumptions are valid.
• Review cash flow forecasts and plans for managing current liabilities, especially taxation and social security obligations (£9,765).
• Investigate the sustainability of the business model given the micro scale, single director setup, and media representation industry risks.
• Confirm no undisclosed liabilities or contingent risks exist that could impact solvency.
• Assess customer concentration, contract terms, and revenue sources for stability and growth potential.