NIGEL MCGEE LIMITED

Executive Summary

Nigel McGee Limited demonstrates high financial risk driven by worsening liquidity and solvency metrics, with net current liabilities doubling and shareholder funds deeply negative as of January 2024. Compliance with filing requirements and sole directorship provide some governance stability, but the lack of disclosed profitability and minimal cash reserves raise concerns about operational sustainability. Detailed due diligence into revenue performance and creditor obligations is recommended to clarify the company’s financial trajectory.

NIGEL MCGEE LIMITED - Analysis Report

Company Number: 13126688

Analysis Date: 2025-07-20 14:07 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with persistent and increasing net current liabilities and negative net assets. The company's financial position has deteriorated substantially over recent years, indicating challenges in meeting obligations and sustaining operations.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current liabilities have more than doubled from £21,003 in 2023 to £43,020 in 2024, indicating worsening short-term liquidity pressures.
• Consistent Net Losses and Negative Shareholder Funds: Shareholders’ funds are deeply negative at £42,963 in 2024, more than double the prior year’s deficit, suggesting accumulated losses and erosion of equity capital.
• Small Cash Balance: Cash on hand is minimal (£147 in 2024), which raises concerns regarding the company’s capacity to cover imminent expenses and obligations without additional financing or cash inflows.

3. Positive Indicators:

• Timely Filing Compliance: The company has up-to-date accounts and confirmation statements with no overdue filings, reflecting regulatory compliance and management attention to statutory obligations.
• Sole Director Control: The sole director and 100% shareholder is actively involved, which may facilitate swift decision-making and potential capital injections if required.
• Small Operational Footprint: With only one employee and minimal fixed assets, the business likely has low fixed overheads, which could allow for operational flexibility.

4. Due Diligence Notes:

• Examine Revenue and Profitability Trends: The accounts do not disclose turnover or profit/loss figures explicitly; understanding revenue generation and gross margins is crucial to assess operational viability.
• Assess Debt Composition and Creditors: Investigate the nature and terms of the £56,973 current liabilities to determine if these are trade creditors, loans, or other obligations, and the risk of enforcement actions.
• Evaluate Cash Flow Management: Review cash flow statements or bank statements (not provided) to assess inflows and outflows to better understand liquidity dynamics and working capital management.
• Future Funding Plans: Clarify whether the director or external parties plan to inject further capital or restructure debts to stabilize the financial position.
• Review Director’s Statement and Strategic Plans: The accounts document lacks a detailed strategic report; additional management commentary on business outlook and turnaround strategies would be informative.

Executive Summary:
Nigel McGee Limited is facing significant financial distress marked by escalating net current liabilities and deepening negative equity, which pose serious solvency and liquidity risks. While compliance with filing deadlines and directorial control are positive governance factors, the company’s operational sustainability is uncertain without evidence of improving revenue or cash flow. Further investigation into the company’s revenue streams, creditor profile, and funding plans is essential before considering investment.