BONES SFX LTD

Executive Summary

Bones SFX Ltd, incorporated in 2023, is currently solvent but financially fragile with net liabilities and negative working capital shortly after inception. The company depends heavily on director funding, and while compliance with filing requirements is up to date, operational cash flow and solvency risks remain high. Further scrutiny of director advances and business viability is recommended before investment consideration.

BONES SFX LTD - Analysis Report

Company Number: 15055656

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and negative working capital indicating an inability to meet current obligations from available assets.

2. Key Concerns:

• Negative Net Current Assets (-£6,323) and Net Liabilities (-£1,589) after just over one year of operation suggest financial strain and potential cash flow issues.
• Significant director advances (£21,826) disclosed, indicating reliance on director funding rather than operational cash generation.
• The sole director is also the 75-100% shareholder with full control, concentrating governance risk and potentially limiting independent oversight.

3. Positive Indicators:

• The company is active and has filed accounts and confirmation statements on time, demonstrating regulatory compliance so far.
• Tangible fixed assets (computer equipment) have been acquired and depreciated in line with accounting policy, indicating some investment in operational capacity.
• Business area (TV programme production) can have growth potential if managed and funded effectively.

4. Due Diligence Notes:

• Investigate the nature and terms of director advances: are these loans, capital injections, or other? Assess repayment plans or impairment risk.
• Review cash flow forecasts and business plan to understand how the company intends to remedy negative working capital and net liabilities.
• Assess customer contracts and revenue pipeline to evaluate operational sustainability and prospects for generating positive cash flows.
• Confirm no outstanding or impending regulatory or legal issues related to company governance or director conduct.