PROXY MEDIA LTD.

Executive Summary

Proxy Media Ltd’s recent financials reveal a sharp deterioration in liquidity and capital base, with net assets falling to minimal levels and current liabilities exceeding current assets. These indicators suggest the company currently lacks the financial strength and cash flow stability required to support credit facilities. Without evidence of improved working capital management or funding support, credit approval is not recommended at this time.

PROXY MEDIA LTD. - Analysis Report

Company Number: 13246793

Analysis Date: 2025-07-20 19:04 UTC

1. Credit Opinion: DECLINE
   Proxy Media Ltd shows significant deterioration in financial health over the last two years. The net assets have fallen sharply from £7,518 in 2023 to just £216 in 2024, indicating severe erosion of equity and potential capital impairment. The company’s working capital position has reversed from a healthy net current asset surplus of £5,750 to a net current liability deficit of £199, reflecting liquidity stress. The large reduction in trade debtors and cash year-on-year without a corresponding reduction in current liabilities, especially tax liabilities, raises concerns about receivables collection and cash flow management. Given these weaknesses, the company currently lacks sufficient financial strength and liquidity to confidently service new or existing credit facilities.

2. Financial Strength:
   The company’s tangible fixed assets have been heavily depreciated or impaired, dropping from £1,768 to £415, signaling possible underinvestment or asset write-downs. Shareholders’ funds have diminished drastically, which undermines the company’s capital base. The presence of outstanding director advances and the significant corporation tax creditor (£3,701) further stress the balance sheet. The low share capital of £1.00 offers no buffer for creditors. Overall, the balance sheet is fragile and shows signs of financial distress.

3. Cash Flow Assessment:
   Cash at bank declined from £9,555 to £2,888, and trade debtors also fell markedly from £8,832 to £600, which could indicate either a drop in sales or aggressive write-offs. Current liabilities remain substantial at £5,344, including overdue tax obligations. The company’s net current liability position implies potential difficulties in meeting short-term obligations without additional funding or improved cash inflows. The absence of profit and loss data limits assessment, but the balance sheet indicators suggest cash flow is currently constrained.

4. Monitoring Points:

• Monitor timely payment of corporation tax and other statutory liabilities to avoid penalties or enforcement action.
• Review debtor aging and collection effectiveness to restore receivables to a healthy level.
• Track cash flow forecasts and working capital management improvements.
• Assess any director support or external funding arrangements as a liquidity buffer.
• Watch for improvements in net assets and equity position in subsequent accounts.