SOPHIE WILLARD EVENT MANAGEMENT LTD

Executive Summary

Sophie Willard Event Management Ltd demonstrates regulatory compliance but faces elevated liquidity and solvency risks as evidenced by persistent negative working capital and a substantial tax creditor. The director’s loan balance and limited cash reserves compound concerns regarding short-term financial stability. Further due diligence on cash flow dynamics and related party balances is recommended before considering investment.

SOPHIE WILLARD EVENT MANAGEMENT LTD - Analysis Report

Company Number: 13112748

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent net current liabilities over the past three years, indicating liquidity stress. The current liabilities, particularly corporation tax payable, significantly exceed cash reserves and debtors, raising solvency concerns. Additionally, the director’s loan account shows a substantial amount owed by the director to the company, which may reflect related party balances complicating cash flow reliability.

2. Key Concerns:

• Negative net current assets for three consecutive years, signaling potential difficulty in meeting short-term obligations.
• Large corporation tax creditor (£36,839 at 2024 year-end) significantly outweighs available cash (£6,723), suggesting possible tax payment delays or accruals that may affect cash flow.
• Director’s loan balance of £34,101 (owed by director to company) with no formal repayment terms may obscure true liquidity and financial position.

3. Positive Indicators:

• The company remains active with up-to-date filings and no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Shareholders’ funds are positive, albeit minimal (£215 in 2024), reflecting at least nominal net assets.
• The business has maintained a stable employee count (one employee) and consistent operations since incorporation in 2021.

4. Due Diligence Notes:

• Investigate the nature, terms, and recoverability of the director’s loan balance to understand impact on liquidity.
• Review cash flow statements (not provided) to assess operational cash generation and ability to service liabilities, especially tax payments.
• Clarify reasons for large corporation tax creditor and confirm if payment plans or disputes exist with HMRC.
• Assess client concentration and revenue generation capability given minimal asset base and small scale of operations.
• Evaluate any off-balance sheet liabilities or contingent risks that may exacerbate financial stress.