MEDINA CONTENT AND DESIGN GROUP LIMITED

Executive Summary

MEDINA CONTENT AND DESIGN GROUP LIMITED has shown a significant financial decline in the latest year, with net liabilities replacing previously positive net assets. The company faces solvency and liquidity risks due to a large increase in current liabilities, though it remains compliant with regulatory filings. Further investigation is needed into the causes of its financial deterioration and management’s plans to restore financial stability.

MEDINA CONTENT AND DESIGN GROUP LIMITED - Analysis Report

Company Number: 12645632

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: HIGH
   The company shows a sharp deterioration in its financial position for the year ending 30 June 2024, moving from positive net assets (£6,991 in 2023) to a significant net liability position (-£12,275 in 2024). This indicates solvency concerns and potential inability to meet obligations.

2. Key Concerns:

• Negative net current assets and net liabilities as of 30 June 2024, suggesting liquidity and solvency risks.
• Dramatic increase in current liabilities (from £12,456 in 2023 to £106,976 in 2024) not matched by current assets growth, signaling possible cash flow stress or overdue payables.
• Company is a micro-entity with a single director and employee, which may indicate operational dependence on one individual and limited management bandwidth.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, with no overdue accounts or confirmation statements, which suggests good regulatory compliance.
• The business classification in video production and publishing points toward creative industries with potential for growth if operational issues are addressed.
• Consistent director in place since incorporation, indicating stability in leadership.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp increase in current liabilities to assess if these are overdue payables, loans, or accruals.
• Clarify cash flow management and funding sources to understand how the company is managing its liquidity crisis.
• Obtain further detail on revenue trends, profitability, and any contingent liabilities or off-balance sheet obligations.
• Review director’s plans for returning the company to a positive net asset position and any restructuring or refinancing underway.
• Verify the accuracy of the financial statements given the unusual negative net assets figure for a micro-entity.