NEW MAKERS BUREAU LTD

Executive Summary

New Makers Bureau Ltd, a micro-entity operating in architectural services, currently faces medium financial risk primarily due to a sharp decline in net assets and a negative working capital position as of March 2024. However, the company demonstrates sound regulatory compliance and operational continuity. Further investigation into the causes of equity erosion and near-term liquidity is advised to assess the company's viability and financial stability going forward.

NEW MAKERS BUREAU LTD - Analysis Report

Company Number: 12625797

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial strain with net current liabilities and minimal net assets as of the latest period, despite having no overdue filings and an active operational status. This poses a moderate solvency and liquidity risk given the micro-entity scale and limited equity buffer.

2. Key Concerns:

• Negative Net Current Assets in 2024: The company reported net current liabilities of £196 in the latest year, a deterioration from positive net current assets in prior years, indicating potential liquidity challenges.
• Minimal Shareholders’ Funds: Equity has dropped to only £2 from £730 the previous year, showing a significant reduction in net assets that undermines solvency and financial stability.
• Consistently Low Fixed Assets and Small Capital Base: Fixed assets remain very low (£1,188), and share capital is nominal (£1), which limits the company’s ability to leverage assets for financing or operational resilience.

3. Positive Indicators:

• Timely Filing and Compliance: Both accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Stable Director and Operational Continuity: The company has a single, consistent director with relevant industry experience (architect) since incorporation, suggesting operational stability.
• Small but Consistent Workforce: Maintaining an average of 2 employees including the director shows a stable scale of operations appropriate for a micro-entity.

4. Due Diligence Notes:

• Investigate Causes of Equity Decline: Review detailed profit and loss accounts and cash flow statements to understand the factors contributing to the sharp decrease in net assets from £730 to £2.
• Assess Liquidity Management: Examine current liabilities composition and upcoming payment obligations to assess short-term cash flow sufficiency given the negative working capital position.
• Review Client and Contract Pipeline: Given the architectural services SIC code, verify ongoing contracts or revenue streams to evaluate sustainability of operations and potential to improve financial position.
• Confirm No Undisclosed Related Party Transactions: Given the single director and small scale, check for any related party transactions that may affect financial health or creditor exposure.