MCKNIGHT RECORDINGS LTD

Executive Summary

MCKNIGHT RECORDINGS LTD is a recently incorporated dormant company with minimal financial activity, reflected by a very low asset base consisting solely of initial share capital. The company is compliant with filing obligations but currently exhibits no operational "heartbeat" or cash flow, resulting in a financial health grade of D. To improve financial wellness, activating trading activities and planning capital requirements are essential next steps.

MCKNIGHT RECORDINGS LTD - Analysis Report

Company Number: 13971196

Analysis Date: 2025-07-29 19:36 UTC

Financial Health Assessment of MCKNIGHT RECORDINGS LTD

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1. Financial Health Score: D

Explanation:
Grade D reflects a company in a very early or inactive stage, with minimal financial activity and extremely limited operational data. This score is due to the dormant status, negligible asset base, and absence of trading figures, limiting assessment of financial robustness or operational viability.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	The company is currently registered and operating legally, but this does not imply active trading.
Account Category	Dormant	No significant financial transactions during the reported financial year.
Cash on Hand	£51.20	Essentially negligible cash reserves, indicating no operational cash flow.
Net Assets	£51.20	Minimal net asset base, which equals the share capital invested; no retained earnings or liabilities.
Shareholders' Funds	£51.20	Reflects only the initial capital injection; no accumulated profits or losses.
Director & PSC	Single individual (Fraser McKnight) with 75-100% ownership	Concentrated control, typical for small or micro enterprises.
Filing Compliance	Up-to-date	Accounts and confirmation statements filed on time, showing compliance with statutory requirements.

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3. Diagnosis

• Dormant Status & Minimal Activity: The company is dormant, meaning it has not engaged in trading or financial transactions beyond the initial share capital injection. This is confirmed by the static cash and net assets figures over three years. The "symptom" of very low cash and no recorded liabilities or assets beyond share capital suggests that the company is essentially inactive or in incubation.

• Limited Financial Information: The absence of income, expenses, or operational metrics means there is no "heartbeat" to measure profitability, cash flow health, or solvency. This is akin to a patient with stable but minimal vital signs — alive but under observation without active treatment.

• Concentrated Control: A single director and sole significant shareholder indicate a tightly held business, common in start-ups or holding entities. This structure reduces complexity but also concentrates risk in one individual.

• Regulatory Compliance: The company is maintaining regulatory "check-ups" by filing timely accounts and confirmation statements, which is positive and reduces risk of penalties or administrative intervention.

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4. Recommendations

• Activate Business Operations: If the company intends to trade, it needs to commence operational activities to generate revenue and cash flow. Dormancy is sustainable only short-term; prolonged inactivity may erode shareholder value and business relevance.

• Maintain Financial Records: Even in dormant status, keep clear records to ensure smooth transition to active trading and compliance with Companies House.

• Plan for Capital Needs: With only £51 in capital, consider whether additional funding injections or external financing will be required to fuel growth or initial activities.

• Monitor Compliance Rigorously: Continue timely filings to avoid penalties or regulatory complications, especially if moving from dormant to active status.

• Evaluate Business Model & Market: Review the feasibility of sound recording and music publishing plans, as the industry can be capital-intensive and competitive. Develop a clear strategy to turn the dormant entity into a "healthy" operating business with positive financial flows.

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