LOWEN MUSIC LIMITED
Executive Summary
LOWEN MUSIC LIMITED is currently a dormant company with no trading activity and minimal financial assets, reflected in a financial health grade of D. While it is in good compliance standing, its financial vitality is minimal due to inactivity. To improve financial wellness, the company should focus on initiating operations with a solid business plan and establishing robust financial controls and liquidity management.
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This analysis is opinion only and should not be interpreted as financial advice.
LOWEN MUSIC LIMITED - Analysis Report
Financial Health Assessment for LOWEN MUSIC LIMITED
1. Financial Health Score:
Grade: D (Dormant/Minimal Activity)
Explanation: LOWEN MUSIC LIMITED is currently classified as a dormant company with extremely minimal financial activity, evidenced by a net asset base of £1 and cash holdings of £1. While the company is active in legal terms, the financial metrics show no operational business transactions, which significantly limits assessment of financial strength or risk.
2. Key Vital Signs:
Metric | Value | Interpretation |
---|---|---|
Status | Active | Company is legally operating but dormant financially. |
Account Category | Dormant | Indicates no significant financial transactions in the year. |
Cash at bank | £1 | Near-zero liquidity; no operational cash flow. |
Net Assets | £1 | Minimal equity, no tangible or intangible assets recorded. |
Shareholders' Funds | £1 | Reflects initial share capital only, no retained earnings. |
Director Control | Single director owns 75-100% shares and voting rights | Centralized control, potential decision-making efficiency but also risk concentration. |
Industry Classification | Performing arts | Sector with variable income streams, but currently inactive. |
3. Diagnosis:
LOWEN MUSIC LIMITED exhibits the "symptoms" of a financially dormant entity. The company has not engaged in any trading or operational activity since incorporation in August 2023, as confirmed by dormant accounts filing. The financial "vital signs" show an absence of revenue, expenses, assets, liabilities, or cash flow beyond the nominal £1 share capital and cash balance.
This lack of financial movement means the company is not currently generating income, incurring costs, or building asset value. While this is not a negative per se—it may be a strategic choice or preparatory phase—it does render the financial health assessment limited in scope. The company is at a "baseline health" state, with no signs of distress but also no indicators of growth or financial robustness.
The sole director and majority shareholder, Miss Nina Saeidi, holds full control, which can be efficient for decision-making but concentrates risk in governance and operational continuity.
4. Recommendations:
Activate Operations or Strategic Planning: If the company intends to commence trading in performing arts, developing a clear business plan with projected cash flow, revenue streams, and expense management will be critical to transition from dormancy to financial health.
Maintain Compliance: Continue timely filing of dormant accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.
Build Financial Buffer: Upon commencing trading, establish a healthy cash flow reserve to cover operational costs and unexpected expenses—a "healthy pulse" for business resilience.
Consider Financial Reporting: Once activity begins, adopt regular financial monitoring and reporting to track profitability, liquidity, and solvency—key indicators of financial wellness.
Governance: With centralized control, consider risk management practices to mitigate dependency on a single individual, such as appointing additional directors or advisors.
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