MAGNIFY ACADEMY LIMITED

Executive Summary

Magnify Academy Limited demonstrates high financial risk, evidenced by net liabilities and negative working capital shortly after incorporation. While compliance with statutory filings and clear ownership structure are positive, liquidity shortfalls and operational scale limitations present significant concerns. Further due diligence on financial strategy and creditor terms is recommended before investment consideration.

MAGNIFY ACADEMY LIMITED - Analysis Report

Company Number: 14811427

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities (£-5,574) and negative net current assets (£-6,756) with minimal cash (£100), indicating immediate solvency and liquidity challenges for meeting short-term obligations.

2. Key Concerns:

• Negative net assets and shareholders’ funds suggest the company is currently insolvent on a balance sheet basis.
• Current liabilities (£6,856) far exceed current assets (£100 cash + negligible other current assets), implying liquidity risk and potential difficulties in meeting creditor demands.
• No employees and minimal fixed assets indicate limited operational capacity or scale, raising questions on ongoing business sustainability.

3. Positive Indicators:

• The company is compliant with filing requirements (accounts and returns are up to date, no overdue filings).
• A single director and 75-100% shareholder control suggests centralized decision-making and clear governance responsibility.
• The company is newly incorporated (April 2023) and operating in education services, which may imply potential for growth if adequately capitalized.

4. Due Diligence Notes:

• Investigate the underlying cause of the negative net assets—whether due to start-up losses, unpaid liabilities, or capital structure issues.
• Review cash flow projections and funding plans to assess the company’s ability to meet short-term liabilities and sustain operations.
• Confirm the nature of the £6,556 other creditors to understand creditor composition and any potential disputes or overdue debts.
• Assess whether any off-balance sheet liabilities or contingent liabilities exist that could exacerbate financial risks.
• Consider management plans for business development and capital injection to improve solvency and operational scale.