SPRINT CREATIVE LTD

Executive Summary

Sprint Creative Ltd is an active small-scale advertising agency exhibiting consistent statutory compliance but facing liquidity challenges evidenced by negative net current assets and rising short-term liabilities. While operational continuity is indicated, the modest capital structure and concentration risks warrant close monitoring of cash flow and tax liabilities to mitigate solvency risk. Further due diligence on financial operations and business sustainability is recommended before investment.

SPRINT CREATIVE LTD - Analysis Report

Company Number: 13255487

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: MEDIUM
   The company demonstrates an ongoing operational presence and filing compliance but exhibits recurring negative net current assets and increasing current liabilities relative to assets, indicating potential liquidity constraints. The limited capital base and modest asset size heighten solvency concerns.

2. Key Concerns:

• Negative net current assets over the last two years (e.g., -£297 as of 31 March 2023) suggest potential short-term liquidity pressure to meet obligations.
• Significant current liabilities primarily comprise taxation and social security (£7,767 in 2023), which may indicate cash flow timing issues or tax liabilities that require close monitoring.
• Minimal share capital (£1) and reliance on one director and one employee imply operational concentration risk and limited financial cushioning.

3. Positive Indicators:

• The company is active, current with statutory filings (accounts and confirmation statements not overdue), indicating regulatory compliance.
• Shareholders’ funds have increased from £578 in 2022 to £918 in 2023, showing some retained earnings growth despite limited scale.
• Presence of tangible fixed assets (£1,215 net book value in 2023) suggests some investment in operational infrastructure beyond purely intangible assets.

4. Due Diligence Notes:

• Clarify the nature and timing of the taxation and social security liabilities to assess if these represent deferred payments or ongoing cash flow challenges.
• Review cash flow statements and bank reconciliations (not provided) to evaluate liquidity management and operational cash generation.
• Investigate the company’s revenue streams and client base stability given the small employee base and concentrated control by a single director.
• Understand the rationale for the previous name change early in the company lifecycle and any strategic shifts that accompanied it.
• Confirm the absence of any director disqualification or regulatory sanctions on the sole director.