NICHOLAS BUNBY EVENT PRODUCTION LTD

Executive Summary

Nicholas Bunby Event Production Ltd shows heightened financial risk due to negative net assets and working capital in 2024, despite compliance with filing duties. The company’s liquidity position and dividend practices amid apparent losses warrant close scrutiny to assess ongoing operational sustainability and solvency.

NICHOLAS BUNBY EVENT PRODUCTION LTD - Analysis Report

Company Number: 14144394

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position in the latest year, with net liabilities of £126 and negative net current assets of £382. This indicates potential solvency and liquidity risks.

2. Key Concerns:

• Solvency deterioration: The net asset position swung from positive £4,371 in 2023 to negative £126 in 2024, signaling erosion of shareholder equity and potential insolvency risk.
• Liquidity constraints: Current liabilities (£406) exceed current assets (£24) substantially as of 2024, with almost no cash reported, implying cash flow pressures to meet short-term obligations.
• Revenue and profitability concerns: The accounts do not disclose turnover or profit/loss figures, but the retained earnings moved from a positive £4,271 to a negative £226, indicating losses or dividend payments exceeding profits. The interim dividend noted (£4,271 in 2024) despite losses raises concerns over cash management.

3. Positive Indicators:

• The company is timely in filing both accounts and confirmation statements, demonstrating compliance with statutory obligations.
• It is a private limited company with a single director, allowing clear accountability.
• Tangible assets, although minimal (£316), are maintained, showing some capital investment.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and negative retained earnings—was it operational losses, dividend distributions, or write-downs?
• Review cash flow statements or management accounts (not filed here) to assess ongoing liquidity and cash management practices.
• Examine contracts, customer base, and revenue streams to evaluate sustainability of the business model given the financial position.
• Clarify the rationale behind dividend payments during a loss-making period.
• Confirm no contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.

Executive Summary:
Nicholas Bunby Event Production Ltd has experienced a marked weakening in financial health over the latest year, with net liabilities and negative working capital raising concerns about its ability to meet short-term obligations. While the company is compliant with filing requirements, the lack of disclosed profitability data combined with dividend payments amid losses suggests potential operational and cash flow challenges. Further investigation into underlying causes and future viability is recommended.