Company Number: 14597323

Analysis Date: 2025-07-29 13:07 UTC

1. Risk Rating: HIGH
   Justification: The company shows net current liabilities and negative net assets at the year end, indicating insolvency concerns at this early stage of operations. As a micro-entity incorporated in 2023 with minimal assets and liabilities exceeding current assets, the risk of financial distress is elevated.

2. Key Concerns:

• Negative net current assets of £2,359 and overall negative net assets suggest the company is currently insolvent on a balance sheet basis.
• Sole director and 75-100% shareholder concentration may raise governance and succession risk.
• Limited financial history and small scale (one employee, micro-entity status) restrict ability to assess operational stability and cash flow generation.

3. Positive Indicators:

• Company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory adherence.
• No indication of director disqualifications or adverse governance flags.
• Business activity in support for performing arts may have niche market potential.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether they are trade creditors, loans, or other obligations.
• Assess cash flow projections and funding plans to address negative net assets and working capital deficit.
• Understand business model, contracts, and revenue pipeline to evaluate operational sustainability beyond initial incorporation phase.
• Review director’s background and financial commitments to support the company going forward.