Company Number: 13889897

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion: DECLINE. Magenta Cherry Limited is a very recently incorporated micro private limited company with minimal financial activity as reflected in its accounts for three consecutive years ending 2024. The company shows an extremely limited asset base (£360 current assets), no net working capital, and negligible equity (£1). There is no evidence of profitability, operational scale, or cash flow generation. The company has no employees and minimal financial history to assess creditworthiness. Given the lack of financial substance and operational track record, the risk of default on any credit facility is high.

2. Financial Strength: The balance sheet is extremely weak. Current assets (£360) exactly match current liabilities (£360), resulting in zero net current assets and effectively no working capital buffer. Shareholders’ funds stand at £1, indicating no retained earnings or capital injection beyond the nominal share capital. The company’s total assets less current liabilities also show just £1, reflecting no fixed assets or investments. The micro-entity accounts comply with minimal filing requirements but do not demonstrate financial resilience or capacity to absorb business shocks.

3. Cash Flow Assessment: There is no disclosed information on cash flows or profit and loss in the provided data. The static current assets and liabilities figures over three years imply no significant trading activity or cash generation. Absence of employees and no change in financial position year-on-year suggest the company is either dormant in practice or minimally active. Liquidity is non-existent beyond balancing current assets and liabilities, and there is no working capital to support operational needs or debt servicing.

4. Monitoring Points:

• Any material change in turnover, assets, or liabilities in future accounts filings.
• Evidence of operational activity such as invoices, contracts, or cash inflows.
• Director’s financial commitment or external funding injections.
• Timeliness and completeness of future statutory filings.
• Changes in company status or director appointments that might indicate restructuring or risk.