Company Number: SC682011

Analysis Date: 2025-07-29 15:32 UTC

1. Risk Rating: HIGH
   Glover & Daughter Ltd shows persistent net current liabilities and minimal net assets over the past four financial years, indicating ongoing liquidity and solvency challenges. The company’s micro-entity scale and limited financial resources elevate its risk profile.

2. Key Concerns:

• Negative Working Capital: The company consistently reports net current liabilities (negative net current assets) ranging from £7,001 to £12,280, suggesting it may struggle to meet short-term obligations as they fall due.
• Minimal Shareholders’ Funds: Shareholders’ funds have declined from £2,270 in 2021 and 2022 to just £204 in 2023, indicating erosion of equity and potential capital deficiency.
• Single Director and Control Concentration: The company is managed and controlled solely by Ms Kirsty Glover, who owns 75-100% of shares and voting rights. This concentration may pose governance and operational risks, especially given the very small size (one employee) and lack of independent oversight.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance and no evidence of administrative neglect.
• Active Status and No Insolvency Proceedings: The company remains active and there are no indications of liquidation, administration, or receivership, suggesting it is continuing operations.
• Micro-Entity Reporting: Utilization of micro-entity accounting provisions reduces administrative burden and may reflect a lean operational model appropriate for a small television production activity.

4. Due Diligence Notes:

• Cash Flow and Creditors: Investigate the company’s cash flow statements (not provided) to assess how it manages liquidity given the negative working capital. Confirm if there are any overdue or disputed creditors.
• Revenue and Profitability Trends: Obtain more detailed profit and loss information to understand if losses are ongoing and the company’s path to profitability or break-even.
• Director’s Plans and Financial Support: Clarify if the sole director or related parties provide financial support (e.g., loans or capital injections) to sustain operations.
• Business Model Sustainability: Review contracts, client base, and pipeline in the television production sector to assess operational viability and growth prospects.
• Potential Contingent Liabilities: Verify whether there are any off-balance sheet liabilities or contingent obligations that could worsen the financial position.