Company Number: 14017816

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM
   The company has recently transitioned from a net liability position in 2022 to a modest net asset position in 2023. While this indicates some improvement in solvency, the net assets remain very low (£7,309), signaling limited financial buffer. The company operates with modest working capital and a small number of employees, characteristic of a small enterprise in a niche sector.

2. Key Concerns:

• Thin Net Asset Base: The net assets of £7,309 as at 31 December 2023 are minimal, providing little cushion against adverse financial events or unexpected liabilities.
• Volatile Working Capital Position: A swing from negative net current assets of -£31,332 in 2022 to a positive £7,309 in 2023 suggests fluctuations in liquidity which could impact operational stability.
• Limited Financial Disclosures: The accounts are unaudited abridged accounts with no profit and loss account filed, restricting insight into profitability, cash flow trends, and detailed risk factors.

3. Positive Indicators:

• Improvement in Financial Position: The reversal from negative net assets in 2022 to a positive position in 2023 shows progress in financial health.
• Adequate Cash Holdings: Cash of £164,935 at year-end 2023 represents a substantial proportion of current assets, suggesting reasonable liquidity to meet short-term obligations.
• Timely Compliance: The company is up to date with its filing requirements, with no overdue accounts or confirmation statements, indicating good regulatory compliance.

4. Due Diligence Notes:

• Profitability and Cash Flow Analysis: Obtain more detailed financial statements or management accounts to understand revenue trends, expenses, and cash generation capacity.
• Debtor Quality: Investigate the nature and collectability of trade debtors (£12,192) as a significant proportion relative to total current assets.
• Director and Ownership Background: The sole director and significant control holder is Charlie Mackesy Limited; further background checks on these parties and their financial standing would be prudent.
• Business Model and Revenue Streams: Clarify the company's business operations in television and motion picture production, including client base, contracts, and market position to assess operational sustainability.