ML CREATIVE LTD

Executive Summary

ML Creative Ltd shows a concerning downward trend in financial health with markedly reduced net assets and liquidity, combined with no employees indicating limited operational activity. While statutory compliance is maintained, the company’s financial position suggests elevated solvency and liquidity risks. Further detailed investigation into recent financial performance and business operations is advisable before considering investment exposure.

ML CREATIVE LTD - Analysis Report

Company Number: 12939212

Analysis Date: 2025-07-29 15:31 UTC

1. Risk Rating: HIGH
   ML Creative Ltd exhibits significant financial deterioration over recent years with a sharp decline in net assets and current assets, indicating elevated solvency and liquidity risks. The absence of employees and minimal fixed assets further suggests limited operational capacity.

2. Key Concerns:

• Substantial reduction in net assets from £5,891 in 2023 to £1,475 in 2024, signaling potential financial distress or losses.
• Current assets dropped markedly from £5,799 in 2023 to £1,122 in 2024, raising concerns about liquidity and the ability to meet short-term obligations despite current liabilities also decreasing.
• No employees reported during the latest year, which may imply minimal business activity or reliance on external contractors, questioning operational sustainability.

3. Positive Indicators:

• The company remains active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Shareholders’ funds remain positive, albeit reduced, showing that the company is not insolvent on a balance sheet basis at present.
• The company operates within the IT services sector (SIC 62090), which typically has low fixed asset requirements and scalability potential.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in assets and net worth between 2023 and 2024, including any impairments, write-offs, or losses.
• Review cash flow statements (if available) to assess operational cash generation and liquidity trends.
• Clarify the nature and scale of the company’s operations given zero employees and low asset base, including dependence on contractors or outsourced services.
• Confirm any contingent liabilities or off-balance-sheet obligations that may exacerbate risk.
• Assess directors’ future plans to restore financial stability or restructure the business.