Company Number: 14193295

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: LOW

The company demonstrates a solid financial position with net current assets increasing significantly year-on-year and a positive shareholders' funds balance. There are no overdue filings or indications of regulatory non-compliance. The director is the sole significant controller, which may simplify governance but also concentrates control.

2. Key Concerns:

• Concentration of Control: The sole director and 100% shareholder structure means decision-making and financial risks are concentrated in one individual, which could be a governance risk.
• Trade Debtors: A notable increase in trade debtors from £13,350 (2023) to £61,543 (2024) warrants attention to credit risk and collection efficiency.
• Taxation Liabilities: Tax and social security creditors have increased substantially from £13,469 to £45,423, which could indicate cash flow timing issues or tax payment delays.

3. Positive Indicators:

• Strong Liquidity: Cash holdings have grown from £52,358 to £95,304, supporting the company's ability to meet near-term obligations.
• Improving Working Capital: Net current assets improved markedly to £79,371, reflecting better short-term financial health.
• Compliance and Timeliness: No overdue accounts or confirmation statements, suggesting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and aging of trade debtors to assess collectability and any potential credit risks.
• Review the reasons for the increase in tax and social security liabilities to ensure these are managed and do not pose solvency risks.
• Understand the company's business model and cash flow generation, especially given the performing arts SIC code, to evaluate sustainability and operational risk.
• Confirm there are no undisclosed contingent liabilities or related party transactions given the single director/shareholder structure.
• Verify the absence of director disqualifications or adverse conduct records.