Company Number: 14225050

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risk, underscored by persistent and growing net liabilities and current liabilities far exceeding current assets.

2. Key Concerns:

• Severe Negative Net Assets: The net liabilities have increased sharply from £7,378 in 2023 to £71,419 in 2024, indicating erosion of shareholder equity and financial distress.
• Negative Working Capital: Current liabilities of £10,431 substantially exceed current assets of £1,727, resulting in a net current liability position of £8,704, which signals immediate liquidity challenges.
• Significant Long-Term Creditors: The emergence of £62,715 in creditors due after more than one year, absent in prior year, raises concerns about the company's ability to service long-term debt obligations.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is current on its accounts and confirmation statement filings, avoiding regulatory penalties.
• Active Status and Director Oversight: The company remains active with a current director in place, suggesting ongoing management involvement.
• Small Company Filing Regime: As a small private limited company, the filing requirements are simplified, which may reduce administrative burden.

4. Due Diligence Notes:

• Examine Debt Structure: Investigate the nature and terms of the £62,715 long-term creditors to assess repayment schedules, interest rates, and covenants.
• Review Cash Flow Forecasts: Request management’s cash flow projections to evaluate short-term liquidity and ability to meet current liabilities.
• Assess Business Viability: Obtain detailed operational information including revenue streams, contracts, and cost structure to determine sustainability of the motion picture production activities.
• Director Background and PSC Influence: Consider the experience and financial backing of the director and the significant control interest held by Hamilton’s Pictures for potential support or risks.