Company Number: 14187636

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows a positive net asset position and net current assets as of the latest financial year, indicating an improving solvency position. However, its micro-entity size and limited financial history warrant some caution.

2. Key Concerns:

• Director Loans: Significant unsecured loans to directors remain outstanding (£4,272 combined), which could pose liquidity risks if repayment is delayed or contested.
• Thin Capitalisation: Shareholders’ funds increased from £3 to £5,348, which remains minimal, reflecting a very small capital base with limited financial buffer.
• Limited Operating History: Incorporated in mid-2022 with only two reported financial years limits assessment of operational stability and long-term sustainability.

3. Positive Indicators:

• Improved Working Capital: Net current assets turned positive from negative £5,345 in 2023 to £1,466 in 2024, showing better short-term financial health.
• Timely Filing and Compliance: All accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Active Website and Market Presence: An active website with a clear brand presence suggests ongoing business activity aligned with its SIC code in video production.

4. Due Diligence Notes:

• Verify the nature and terms of director loans including repayment plans and whether these might impact cash flows or creditor priority.
• Review detailed profit and loss accounts to assess revenue trends, profitability, and cash generation beyond balance sheet snapshots.
• Confirm absence of any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.
• Investigate the business model and customer base to assess operational sustainability given the company’s recent formation.