Company Number: 13025289

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency risk, with net liabilities reported as of the most recent accounts. The imbalance between fixed assets and creditors, particularly long-term liabilities, raises concern regarding its ability to meet obligations without external support.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of £12,781 in 2024, worsening from £3,664 in 2023, indicating erosion of equity and potential insolvency risk.
• High Long-term Creditors: Creditors falling due after more than one year total £51,972, exceeding total assets less current liabilities, suggesting substantial debt obligations relative to asset base.
• Minimal Current Assets and Working Capital Deficit: Current assets stand at a nominal £5, while current liabilities are £32,360, resulting in a large negative net current assets position (-£32,355), implying liquidity constraints and potential cash flow difficulties.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets have remained steady at £71,546 over multiple years, which could indicate some tangible asset backing.
• No Overdue Filings: The company is current with statutory filings including accounts and confirmation statements, reflecting regulatory compliance.
• Ongoing Director Support: The director has explicitly stated a commitment to continue supporting the company, which the accounts note as a basis for going concern.

4. Due Diligence Notes:

• Nature and Recoverability of Fixed Assets: Investigate the composition and liquidity of fixed assets, as they represent the majority of the company’s asset base but may not be easily converted to cash.
• Details of Long-term Creditors: Clarify the terms, security, and covenants associated with the £51,972 long-term liabilities to assess refinancing or repayment risk.
• Cash Flow Position and Funding Sources: Review recent cash flow statements and funding arrangements to verify the company’s ability to meet short-term obligations given the negligible current assets and significant current liabilities.
• Director’s Support Capacity: Assess the director’s financial ability and willingness to continue support, given reliance on this for going concern.
• Business Model Viability: Evaluate operational performance and revenue generation prospects in the artistic and social work sectors indicated by SIC codes, to determine sustainability.