Company Number: 14186463

Analysis Date: 2025-07-29 17:30 UTC

1. Credit Opinion: DECLINE. We Are Mighty Ltd demonstrates significant financial distress, evidenced by a large and increasing net liability position (£-63.7k in 2024 vs £-7.3k in 2023). The company’s current liabilities far exceed current assets when considering all liabilities (including long-term creditors), indicating poor short-term liquidity and high leverage. The negative shareholders’ funds and ongoing losses raise serious concerns about the company’s ability to meet debt obligations or sustain operations without substantial capital injection or restructuring.

2. Financial Strength: The balance sheet shows very weak financial strength. Although current assets improved to £19.6k in 2024 from £0.9k in 2023, current liabilities have also ballooned to £72.2k (including £9.9k accruals/deferred income). Fixed assets remain nominal and do not provide security for creditors. The net liabilities position worsened markedly due to substantial long-term creditors appearing in 2024, suggesting reliance on external financing. Overall, the company is highly leveraged with a negative equity base.

3. Cash Flow Assessment: Liquidity is a critical concern. The company’s working capital (current assets minus current liabilities) excluding long-term creditors is positive (£15.9k), but after accounting for creditors due after one year and accruals, net liabilities are substantial. The increase in creditors suggests cash flow pressures and possible reliance on supplier or lender credit. The micro-entity status and single employee indicate a small operational scale, which may limit cash generation capacity. No audit or detailed cash flow statements are available, restricting further analysis.

4. Monitoring Points:

• Monitor net liabilities and shareholder funds for any improvement or further deterioration.
• Track current and long-term liabilities closely, especially creditor balances and any new financing arrangements.
• Review cash flow statements or management accounts if available to assess operational cash generation.
• Watch for director or ownership changes that might indicate restructuring efforts.
• Maintain oversight of filing punctuality and any material changes in business operations or financial metrics.