Of course
Because they are a micro company, they don’t have to show the profit and loss, they only have to show the balance sheet which is basically a snapshot of what the business has at a certain point in time compared to the prior year.
The balance sheet for 31st August 2021 (2nd attachment) shows that they managed to double their reserves in a year which is quite impressive. They have current assets of £419k which is in their case made up of stock and cash in the bank. They have creditors in total of about £415k which is money they owe other people. This could be external suppliers they haven’t paid as well as a loan account back to Elle which is money they invested into the business with the intention to get a return on it.
On a simple basis, including the fixed assets they have they can afford to pay back all suppliers and have funds left over worth £63k to further invest in the business.
2023 is a completely different picture. They’ve firstly extended the accounting period by 6 months, most companies will do this at some point to a more favourable position (for example, if your peak selling time is during the winter, you’d maybe want your balance sheet shown then as you may have a lot of cash in the bank). However in Elles case it’s probably because she didn’t know what they were doing with angelle at that time and wanted to put it off.
The first attachment is their most recent balance sheet from February 2023. So as at that date they had assets of only £75k. A reduction in assets of £344k. This will most likely be down to lack of cash in bank now, as well as the fact they’ve desperately tried to get rid of all their stock because they aren’t continuing with the business anymore. That hasn’t translated well into cash though as you can see. The creditors position (amount they owe other people) has improved by £168k to now show only £245k outstanding. I imagine this is because they have had to repay their third party suppliers. It is most likely that the debt outstanding now is to Elle herself.
The net position here shows that because her assets are now so low, angelle has a debt of £170k which ultimately Elle will take the hit for. She won’t have to physically pay anyone (unless any of that is to a third party obviously) but no doubt she used some of her inheritance/YouTube money to invest in the first place and now she’s actually lost £170k. Oh well.
Hope I’ve explained that ok and not too much of a ramble.