Company Number: 13815386

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: MEDIUM
   The company is active and appears compliant with filing deadlines, but its financial position shows some concerns relating to liquidity and solvency. The net assets are positive but modest (£525), and net current assets have deteriorated to a negative position (-£1,525), indicating working capital constraints.

2. Key Concerns:

• Liquidity Pressure: Cash at bank decreased significantly from £7,093 in 2022 to £762 in 2023, while current liabilities remain high (£5,606), suggesting tight short-term cash flow management.
• Deferred Tax Liability: Provisions for liabilities increased to £481, all deferred tax, which could crystallize and affect cash flows.
• Negative Net Current Assets: The company shows a worsening net current asset position from -£405 in 2022 to -£1,525 in 2023, implying current liabilities exceed current assets and potential short-term solvency risk.

3. Positive Indicators:

• Compliance and Governance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance to date.
• Modest Net Asset Growth: Net assets increased from £180 in 2022 to £525 in 2023, showing some equity build-up despite challenges.
• Ownership and Management Stability: Directors and persons with significant control are consistent since incorporation, suggesting stable governance.

4. Due Diligence Notes:

• Investigate the nature and timing of deferred tax liabilities and whether sufficient provisions and cash flow forecasts are in place to manage potential tax outflows.
• Review the composition of debtors (£3,319) and prepayments to assess collectability and impact on cash flow.
• Confirm operational cash flows and whether the company has sufficient access to credit facilities or other liquidity sources given the reduced cash balance.
• Validate whether the increase in tangible fixed assets (£2,531) relates to capital expenditure critical to business operations or if it impacts liquidity.
• Assess the business model sustainability given the SIC code (renting and leasing of media entertainment equipment) and market conditions.