LEVERTON MEDIA LTD

Executive Summary

Leverton Media Ltd shows significant financial strain with worsening liquidity and declining net assets, primarily due to reliance on director financing. The company is current on statutory filings and claims going concern status, but its operational sustainability and solvency remain at risk without strengthened cash flows or external funding. Further investigation into director liabilities and trading performance is recommended to clarify financial stability.

LEVERTON MEDIA LTD - Analysis Report

Company Number: 13459122

Analysis Date: 2025-07-20 17:37 UTC

1. Risk Rating: HIGH

The company exhibits significant liquidity and solvency concerns indicated by persistent net current liabilities and a sharp decline in net assets over recent years. The director’s current account forms the majority of current liabilities, raising questions about reliance on director funding and operational cash flow sustainability.

2. Key Concerns:

• Negative net current assets for multiple years, worsening from -£9,055 in 2023 to -£20,749 in 2024, highlighting liquidity risk.
• Declining net assets and shareholder funds from £29,331 in 2023 to £12,839 in 2024, reflecting deteriorating financial health.
• Large creditor balance classified as director’s current account (£41,894 in 2024), indicating dependence on director financing which could be withdrawn, risking solvency.

3. Positive Indicators:

• Company has consistently filed accounts and confirmation statements on time with no overdue filings.
• Going concern assumption is stated by the director in the accounts, implying no immediate insolvency proceedings or material uncertainties disclosed.
• Maintains a small cash balance (~£24k), which may support short-term operations.

4. Due Diligence Notes:

• Investigate nature and terms of director’s current account liabilities and the director’s willingness/ability to continue funding.
• Review trading performance, turnover, and profitability trends to assess operational viability beyond balance sheet position.
• Confirm any off-balance sheet liabilities or contingent liabilities not disclosed.
• Assess customer concentration and debtor collectability given the sharp drop in trade debtor balances.
• Verify the accuracy of goodwill valuation and amortisation policy given its material proportion of net assets.