Company Number: 13459505

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities, indicating potential solvency issues. The micro-entity accounts reveal net assets of -£8,907 at the latest year-end, worsening from the prior year. The fixed assets are minimal and declining, and current liabilities have increased significantly, which raises concerns about the company's ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position worsens year-on-year, suggesting it may not have sufficient resources to cover debts.
• Liquidity Concerns: Negative net current assets imply cash flow constraints, with current liabilities exceeding current assets, which could impede operational activities.
• Operational Sustainability: With an average of one employee and limited fixed assets, the business scale is minimal, and no evidence of revenue or profitability is provided, raising questions about the ongoing viability.

3. Positive Indicators:

• Compliance and Governance: The company is active with no overdue filings for accounts or confirmation statements, indicating good compliance with statutory requirements.
• Ownership and Control: A single director/owner with full control may allow for swift decision-making and clear accountability.
• Company Status: The company is not in liquidation or administration, and filings suggest it is currently in regular operation.

4. Due Diligence Notes:

• Financial Performance Details: Obtain detailed profit and loss data, cash flow statements, and turnover figures to assess operational performance and cash generation capability.
• Creditors Breakdown: Review the nature and terms of current liabilities to understand immediate payment obligations and possible restructuring needs.
• Business Model and Market Position: Investigate the company’s revenue sources, client base, and sustainability of the performing arts activities given the micro scale and limited assets.
• Director’s Plans and External Support: Understand if there are any plans for capital injection, loan facilities, or other support to address the negative net asset position.