Company Number: 13003500

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: MEDIUM
   The company shows a recent return to positive net current assets and shareholders’ funds after several years of negative equity, indicating some recovery. However, the absolute values remain modest, and the company operates in a niche sector with a single employee, which may limit operational resilience.

2. Key Concerns:

• Liquidity Pressure: Current liabilities remain high relative to current assets, with net current assets only marginally positive (£5,078 as of 2024). This tight working capital situation poses a risk if unexpected expenses arise or cash inflows are delayed.
• Limited Scale and Resources: The company is micro-sized with only one employee on average, which may constrain its ability to scale operations or manage business risks effectively.
• Negative Equity History: The company reported negative shareholders’ funds in prior years (2022 and 2023), although this has improved in 2024, raising questions about past financial stability and the sustainability of the current recovery.

3. Positive Indicators:

• Recent Financial Improvement: The latest accounts show a positive turnaround in net current assets and shareholders’ funds, suggesting improved financial management or operational performance.
• Compliance and Timely Filing: All statutory filings and accounts are up to date with no overdue deadlines, indicating good governance and regulatory compliance.
• No Indication of Insolvency or Liquidation: The company remains active and not under any formal insolvency procedures, which supports operational continuity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess short-term repayment risks and cash flow adequacy.
• Review revenue streams and profitability trends to understand the drivers behind the recent financial improvement and sustainability of earnings.
• Clarify ownership/control structure as no persons with significant control are listed, which may affect governance transparency.
• Assess dependence on the single employee and any key person risks, including plans for growth or diversification of operational capacity.
• Understand the impact of the company’s niche SIC codes (operation/support of arts facilities) on market demand and financial volatility.