SIMON NICHOLLS CREATIVE LTD

Executive Summary

Simon Nicholls Creative Ltd is a micro private limited company operating in the advertising sector with a stable liquidity position and good compliance record. While net assets have declined modestly, cash availability remains strong and no overdue filings raise regulatory concerns. Further due diligence on profitability and director loans is advisable to confirm ongoing operational stability.

SIMON NICHOLLS CREATIVE LTD - Analysis Report

Company Number: 13133757

Analysis Date: 2025-07-20 15:28 UTC

1. Risk Rating: LOW
   Simon Nicholls Creative Ltd demonstrates a solid liquidity position, positive net assets, and no overdue filings. As a micro-entity in the advertising agency sector with consistent reporting and no signs of financial distress, the overall solvency and operational risks appear low.

2. Key Concerns:

• Declining net assets and net current assets over the last two years (from £43,914 to £38,477 net assets) could indicate shrinking equity or profitability that warrants monitoring.
• Increased director loans from £142 in 2024 compared to £5,555 in 2023, though small, suggest reliance on internal financing which merits review for sustainability.
• Limited scale with only one employee and micro company size may constrain operational resilience and growth potential.

3. Positive Indicators:

• Healthy liquidity position with cash balances consistently above £45,000 and current assets exceeding current liabilities by a comfortable margin.
• No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance discipline.
• Tangible fixed assets growth and investment in computer equipment indicate continued operational capability.

4. Due Diligence Notes:

• Review profitability trends and reasons behind the reduction in net assets and current assets from 2023 to 2024.
• Examine director loan arrangements and repayment terms to assess financial risk from related party financing.
• Assess client base and revenue streams to confirm sustainability given the small workforce and limited balance sheet size.
• Verify completeness of accounts given exemption from audit and reliance on unaudited financials.
• Confirm no outstanding tax or social security liabilities beyond reported creditors to rule out contingent risks.