Company Number: 12978381

Analysis Date: 2025-07-19 11:52 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a net current asset and net asset position of zero, with current liabilities equal to current assets, indicating no working capital buffer. The cash balance is minimal (£1,865), and there are substantial intercompany balances that appear to be cyclical and unsecured. The company relies on financial support from a group entity to continue as a going concern, which raises significant solvency and liquidity risk.

2. Key Concerns:

• Solvency and Liquidity Risk: Zero net assets and zero net current assets, combined with minimal cash on hand, suggest a fragile liquidity position with little capacity to absorb shocks.
• Dependence on Group Support: The going concern statement references financial backing from a related party (Zebra Producciones SA), indicating an inability to sustain operations independently.
• Intercompany Balances: Large receivables (£429k) and payables (£291k) owed to and from group undertakings are unsecured, interest-free, and repayable on demand, which may signal potential cash flow timing issues or lack of external funding.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date, with no overdue filings or apparent regulatory compliance issues.
• Consistent Employee Base: Stable average employee count (2 employees) suggests operational continuity without sudden workforce fluctuations.
• No Director Disqualifications: Directors appear current and without public records of disqualification or governance concerns.
• Active Status and Recent Name Change: The company is active, and the recent name change has been properly filed, indicating ongoing business activity and management oversight.

4. Due Diligence Notes:

• Verify the substance and collectability of the large debtor balances from group companies, including timing and likelihood of repayment.
• Assess the nature and terms of financial support from Zebra Producciones SA, including any contingent liabilities or guarantees.
• Review cash flow forecasts and working capital management to confirm the company’s ability to meet short-term obligations without reliance on group support.
• Investigate the company’s revenue recognition policies and contract statuses, given that revenue recognition is linked to contract delivery and profitability certainty.
• Confirm if there are any off-balance sheet liabilities or contingent exposures not disclosed in the accounts.