Company Number: 14379489

Analysis Date: 2025-07-29 19:34 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and net liabilities over the last two years, indicating significant solvency risk. The current liabilities substantially exceed current assets, raising liquidity concerns. The company is a micro-entity with minimal fixed assets and limited financial buffer.

2. Key Concerns:

• Negative net current assets of approximately £29,912 in 2024 and £25,838 in 2023 indicate potential inability to meet short-term obligations.
• Sharp decline in current assets from £207,939 in 2023 to £8,780 in 2024, while current liabilities remain high (~£38,692), signaling worsening liquidity.
• The company is only two years old with limited operating history and minimal fixed assets (£401), raising questions about operational sustainability.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• Shareholder funds, although negative, are backed by identifiable controlling parties including Special Projects Music Limited and directors with significant shareholdings, which may indicate potential support.
• Employee count increased slightly from 3 to 4, suggesting some operational activity and growth.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities to assess timing and risk of default.
• Review cash flow statements or bank statements (if available) to understand liquidity management and cash runway.
• Assess the business model and revenue streams to evaluate prospects for improving financial stability.
• Clarify whether there are any intercompany balances or related party transactions affecting the balance sheet figures.
• Confirm whether the controlling shareholders have provided or plan to provide financial support given the negative net asset position.