Company Number: 13113456

Analysis Date: 2025-07-19 12:56 UTC

1. Risk Rating: HIGH
   Dancing Kite Ltd shows significant financial strain at the latest year-end, with net current liabilities of £1,135 and minimal net assets of £33. This indicates a weak liquidity position and marginal solvency, elevating risk for creditors and investors.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£3,910) exceed current assets (£2,775), indicating potential cash flow problems to meet short-term obligations.
• Declining Net Assets: Net assets dropped sharply from £4,412 in 2023 to £33 in 2024, suggesting erosion of financial buffers.
• Minimal Share Capital and Equity: Share capital is nominal (£2) and shareholders’ funds are almost depleted (£33), leaving limited resources to absorb losses or finance operations.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, showing compliance with statutory requirements.
• Single Director and PSC Alignment: The director and sole person with significant control are the same, which can streamline decision-making and governance.
• Stable Incorporation and Active Status: The company is active and recently incorporated (2021), which may indicate a startup phase with potential for growth.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in current assets and net assets between 2023 and 2024, specifically the reduction in debtors from £8,489 to £2,245.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and cash management practices.
• Assess the sustainability of the business model in performing arts, including revenue generation, client base, and cost structure, given the small scale and financial strain.
• Clarify any contingent liabilities or off-balance sheet commitments that might exacerbate solvency risk.
• Confirm no director disqualifications or regulatory issues exist beyond company filings.