MEDIA CREATIVE CONSULTANCY LTD

Executive Summary

Media Creative Consultancy Ltd demonstrates significant financial distress with negative net assets and working capital at its first reported year-end, undermining its ability to meet debt obligations. The company’s liquidity is critically weak, and without evidence of capital support or operational cash flow, credit facilities are not recommended at this time. Close monitoring of financial improvements and shareholder support is essential before reconsidering credit exposure.

MEDIA CREATIVE CONSULTANCY LTD - Analysis Report

Company Number: 15055319

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: DECLINE
   Media Creative Consultancy Ltd exhibits a weak financial position as of its first reported year ending August 2024. The company’s negative net assets and shareholders’ funds reflect an equity deficit, indicating it is currently insolvent on a balance sheet basis. With net current liabilities substantially exceeding current assets, the firm faces a liquidity shortfall that impairs its ability to meet short-term obligations. The absence of profitability data limits assessment of operational performance, but given the negative working capital and equity, the company is not presently capable of servicing debt or commercial credit reliably. As a newly incorporated entity with limited financial history and a sole director/shareholder controlling 75-100%, there is elevated risk regarding business continuity and financial stewardship. Without evidence of capital injection or a clear path to positive cash flows, credit extension is not advisable.

2. Financial Strength:
   The balance sheet reveals total fixed assets of £7,894 and current assets of just £601, while current liabilities stand at £14,515. This results in net current assets of -£13,914 and net assets of -£7,603, indicating the company owes more in the short term than it holds in liquid resources plus fixed assets. The capital and reserves being negative implies accumulated losses or initial shareholder contributions insufficient to cover liabilities. This micro-entity is financially fragile and lacks a buffer to absorb shocks or sustain operations without additional funding.

3. Cash Flow Assessment:
   The company’s negative working capital position signals strained liquidity. With current liabilities more than 24 times current assets, there is a high risk of cash shortfall affecting day-to-day operations. The absence of cash or equivalent liquid assets (only £601 in current assets) means the company likely depends on shareholder funding or credit to meet immediate payments. No evidence of cash flow from operations or financing is available, but the balance sheet alone suggests poor short-term cash flow health.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios to positive territory.
• Capital injections or increased equity funding to eliminate negative net assets.
• Filing of profit and loss accounts to assess operational performance and cash generation capability.
• Changes in director’s/shareholder’s commitment to support working capital needs.
• Timely filing of future accounts and confirmation statements to maintain compliance and transparency.