STEVE PRIESTLEY MEDIA LTD

Executive Summary

Steve Priestley Media Ltd is a very small, micro-entity company with minimal net assets and reliance on director funding. It demonstrates compliance with filing requirements and positive net current assets, but the low equity base and unsecured director loan present medium solvency and liquidity risks. Further due diligence on cash flow and operational sustainability is recommended to better understand the company’s financial resilience.

STEVE PRIESTLEY MEDIA LTD - Analysis Report

Company Number: 13911208

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM
   The company is very small and early-stage with minimal net assets and low shareholder equity. However, it is currently solvent with positive net current assets and no overdue filings. The unsecured director loan indicates reliance on internal financing, which may pose liquidity risk if not managed carefully.

2. Key Concerns:

• Minimal Net Assets: Net assets stand at only £6, which is extremely low and signals limited financial buffer against liabilities or operational shocks.
• Director Loan Exposure: £2,926 loan advanced by the director is unsecured and interest-free, indicating dependency on director funding instead of stable external financing or operational cash flows. This could affect liquidity if repayments are not forthcoming.
• Accruals and Deferred Income Nearly Equal Current Assets: Accruals/deferred income (£1,950) almost match current assets (£3,397), potentially restricting available working capital and cash flow flexibility.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement are up to date, indicating compliance with regulatory requirements and good governance discipline.
• Positive Net Current Assets: The company maintains positive net current assets (£1,956), suggesting it can meet short-term liabilities at the reporting date.
• Single Director with Full Control: Clear ownership and control by Mr. Stephen Priestley simplifies governance and decision-making, potentially enabling swift operational responses.

4. Due Diligence Notes:

• Confirm the nature and timing of the director loan repayment and whether it will continue or escalate.
• Review cash flow statements (not provided) to assess liquidity dynamics beyond balance sheet snapshots.
• Investigate business model sustainability given the micro-entity scale and SIC classification in "Other amusement and recreation activities" to understand revenue generating capacity and growth prospects.
• Verify whether accruals and deferred income represent cash received in advance or other liabilities affecting liquidity.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the filings.