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.