MY MAGIC LOTTO LIMITED

Executive Summary

My Magic Lotto Limited operates as a micro player within the broad and competitive business support services sector (SIC 82990) but currently exhibits financial weakness with negative net assets and minimal operational scale. While recent balance sheet improvements are noted, the company remains undercapitalized relative to typical industry benchmarks and faces sector challenges such as regulatory compliance and market competition. Without evident revenue growth or capital investment, its position remains vulnerable compared to more established competitors.

MY MAGIC LOTTO LIMITED - Analysis Report

Company Number: 13135523

Analysis Date: 2025-07-29 20:50 UTC

1. Industry Classification
   My Magic Lotto Limited is classified under SIC code 82990, which denotes "Other business support service activities not elsewhere classified." This sector typically includes companies providing miscellaneous business support services that don’t fit into conventional categories like consultancy, administrative services, or IT support. These companies often operate in niche or specialized support roles that may include lottery management, event administration, or other ancillary services. The sector is characterized by low fixed asset intensity, reliance on human capital and intellectual property, and a high variability in business models and financial performance due to the broad scope of activities covered.

2. Relative Performance
   From the latest financials for the year ended 31 January 2024, My Magic Lotto Limited shows several concerning metrics compared to typical benchmarks in the business support services sector:

• Negative net current assets: The company posted net current liabilities of £52, a significant improvement from prior years but still negative. In contrast, many stable small to medium business support companies maintain positive working capital to ensure operational liquidity.
• Shareholders' funds: The company’s equity is negative at £52 (improved from negative £18,652 in 2023), indicating accumulated losses. This contrasts with more established peers who typically have at least modest positive equity reflecting retained earnings or investment.
• Turnover and profit data are unavailable, but the minimal debtors (£2) and low creditors (£54) suggest a very limited scale of operations. The absence of employees further implies the company is either in early development or not operationally active at scale.
  Overall, the company’s financial position is weak compared to industry norms where positive working capital and equity are standard, even for small businesses.

3. Sector Trends Impact
   The business support services sector is sensitive to overall economic cycles and client business confidence. Key trends affecting companies like My Magic Lotto Limited include:

• Digital transformation and automation: Increasing client demand for automated and tech-enabled support services pressures companies to invest in IT infrastructure and skilled personnel. This can be capital intensive and challenging for micro and small companies.
• Regulatory environment: For companies involved in lottery or gambling support services, compliance with stringent regulatory frameworks (e.g., UK Gambling Commission rules) is critical and can add operational complexity and cost.
• Market fragmentation and competition: The sector is highly competitive with many small players offering specialized services. Market consolidation and client preference for integrated solutions pose risks for niche or undercapitalized firms.
• Impact of economic uncertainty: Budget constraints in client organizations often lead to reduced outsourcing spend, directly affecting business support providers.
  Given My Magic Lotto Limited’s scale and financials, these trends likely represent both challenges in scaling operations and risks to sustainability without capital infusion or clear revenue growth.

4. Competitive Positioning
   My Magic Lotto Limited appears to be a micro/niche player operating in a broad and competitive segment of business support services. Its current financials reveal:
   Strengths:

• Simplicity of operation with minimal liabilities and no employees, possibly indicating low fixed overheads.
• Recent improvement in balance sheet figures suggests some progress in managing liabilities.
  Weaknesses:
• Negative net assets and shareholders’ funds indicate accumulated losses and potential solvency risks.
• Lack of turnover and minimal assets point to very limited commercial traction or scale.
• Limited capital base (£2 share capital) restricts ability to invest in growth or absorb shocks.
• Resignation of one director in early 2024 could imply internal challenges or strategic shifts.
  Compared to other business support service companies that usually have positive equity, a workforce, and ongoing contracts, My Magic Lotto Limited is currently undercapitalized and likely a start-up or dormant entity struggling to establish market presence.