Company Number: 14780827

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net asset position that has worsened substantially within one year, alongside a large long-term creditor balance. This indicates potential solvency issues and financial distress risk.

2. Key Concerns:

• Negative Net Assets: The net liabilities increased from approximately £43,549 in 2023 to around £261,000 in 2024, reflecting an erosion of equity and accumulated losses.
• Substantial Long-Term Liabilities: Creditors due after one year nearly doubled from £150,000 to £350,000, suggesting increased debt burden that may not be easily serviced.
• Working Capital Mismatch: While current assets are modest (£89k), current liabilities are minimal (£280), but the mismatch with large long-term creditors raises concerns about the company’s ability to meet obligations when they fall due.

3. Positive Indicators:

• Cash Position: The company holds a reasonable cash balance (£82k) relative to current liabilities, indicating short-term liquidity is currently manageable.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings noted, reflecting compliance with regulatory requirements.
• Active Status & Industry: The company is active and engaged in software development and publishing of computer games, sectors with growth potential.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£350k), including repayment schedule, interest obligations, and any covenants.
• Review detailed profit and loss data (not filed publicly) to understand the drivers of losses and assess operational sustainability.
• Clarify the relationship and transactions with significant controllers, especially related party loans or funding (noted PSCs in London and Turkey).
• Verify management plans for addressing the growing negative equity and any capital raising or restructuring initiatives underway.
• Confirm the accuracy and completeness of debtor balances and cash flow projections given the limited employee count and scale.