MAGNIFY DM LIMITED

Executive Summary

Magnify DM Limited is a newly formed, small-scale advertising agency exhibiting sound liquidity and solvency with no regulatory compliance issues to date. However, the limited trading history and sole control by one director pose some operational and governance risks. Continued monitoring of financial performance and governance structure is recommended to confirm ongoing stability.

MAGNIFY DM LIMITED - Analysis Report

Company Number: 15470657

Analysis Date: 2025-07-29 17:51 UTC

1. Risk Rating: LOW
   Magnify DM Limited is a newly incorporated company with a positive net current asset position and no indications of overdue filings or financial distress. The company appears solvent with sufficient cash to cover current liabilities, suggesting low immediate risk.

2. Key Concerns:

• Limited operating history: Incorporated in February 2024, the company has less than two years of trading history, which limits assessment of operational stability and future performance.
• Small scale: The company operates with a single employee/director and minimal assets, which may constrain growth and operational flexibility.
• Concentrated control: Mr. Ryan Andrew Lees holds 75-100% of shares and voting rights, concentrating decision-making and control in one individual, which can increase governance risk.

3. Positive Indicators:

• Strong liquidity: Cash holdings (£13,660) exceed current liabilities (£3,033), providing a comfortable liquidity buffer.
• Compliance: No overdue accounts or confirmation statement filings reported, indicating good regulatory compliance to date.
• Positive shareholders’ funds (£10,628) reflect net asset value greater than liabilities, supporting solvency.

4. Due Diligence Notes:

• Review the company’s business plan and market positioning to understand sustainability and growth prospects in the advertising agency sector (SIC 73110).
• Monitor ongoing cash flow and profitability metrics once available, as current accounts lack income statement data due to small company exemptions.
• Assess governance arrangements and potential conflicts of interest due to single-director structure and sole ownership.
• Verify that no related party transactions or contingent liabilities exist that could impact financial stability.
• Confirm if the company has any external financing or credit facilities that may affect liquidity or leverage.