SIMPLY EVENTS DECOR LTD

Executive Summary

Simply Events Decor Ltd is a newly incorporated micro-entity in the event catering sector that has reported modest turnover and an operating loss in its first financial period. While it maintains a positive net asset position and regulatory compliance, the initial financial performance and limited operational scale present significant risks to solvency and liquidity. Careful review of its business model, asset utilization, and funding plans is recommended to assess its sustainability prospects.

SIMPLY EVENTS DECOR LTD - Analysis Report

Company Number: SC769109

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: HIGH
   Simply Events Decor Ltd exhibits a high-risk profile primarily due to its early stage of operation, minimal turnover, and an operating loss in its first financial year. The company's financial data reveals limited revenue generation and negative profitability, which raises concerns about its ability to sustain operations and meet obligations without additional capital infusion.

2. Key Concerns:

• Negative Operating Result: The company reported a loss of £2,998 against a turnover of only £1,821 in its first 13-month period, indicating initial operational challenges and insufficient revenue to cover costs.
• Micro Entity Scale with No Employees: The absence of employees and very limited current assets (£684) suggests constrained operational capacity and potential dependency on the director or external resources, which may limit scalability and resilience.
• Lack of Audit and Limited Disclosures: While compliant with micro-entity reporting exemptions, the unaudited accounts and limited financial disclosures restrict comprehensive assessment of financial health and potential contingent liabilities.

3. Positive Indicators:

• Strong Net Asset Position: The company reports net assets of £5,136, all attributable to shareholder funds, which, although modest, provides a basic equity buffer.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline to date.
• Clear Ownership and Control Structure: The sole director and 75-100% shareholder is identified with no adverse records, simplifying accountability and decision-making.

4. Due Diligence Notes:

• Investigate the source and nature of fixed assets (£4,452) given the early stage of the company and their impact on cash flow.
• Review business plan and cash flow forecasts to assess viability and funding strategy to cover losses and support growth.
• Confirm absence of related party transactions or contingent liabilities not disclosed in micro-entity accounts.
• Monitor future turnover trends and cost control measures in subsequent filings to gauge operational stability.
• Verify director’s background and capacity to manage and finance the business through the startup phase.