Company Number: 12519285

Analysis Date: 2025-07-20 12:24 UTC

1. Risk Rating: MEDIUM
   Sonnaz Media Ltd shows modest net asset growth but has recurring net current liabilities and limited equity. The company is small, with limited fixed assets and a very low share capital base. While no overdue filings or liquidation status are evident, the negative working capital position and reliance on director loans suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets were negative at £81 in 2024 and £210 in 2023, indicating potential short-term liquidity stress.
• Low Equity and Capitalisation: Shareholders’ funds remain very low (£118 in 2024), with a nominal share capital of £100, limiting financial buffer against losses or adverse events.
• Director Loans Written Off: The write-off of an £885 director loan in 2024 raises questions about cash flow management and internal financing practices.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue accounts or confirmation statement filings, showing good regulatory compliance.
• Improved Net Assets: Net assets have increased from £31 in 2023 to £118 in 2024, indicating some profitability or capital injection.
• Active Business with Industry Focus: Registered in a relevant SIC code for media production (SIC 60200 & 59112) and associated with a live website and social media presence, suggesting operational activity.

4. Due Diligence Notes:

• Investigate the nature and collectability of “Other debtors” (£9,078 in 2024), which constitute the bulk of current assets.
• Review cash flow statements (not provided) to assess operational cash generation and ability to meet liabilities.
• Clarify the reason and impact of director loan write-off and any related-party transactions.
• Understand the revenue trends and profitability outlook given limited asset base and small employee count (average 1).
• Confirm whether the company maintains adequate insurance and complies with media industry regulations.