Company Number: 13921731

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: LOW
   The company shows a positive and improving financial position with net assets increasing from £1,387 in 2023 to £5,928 in 2024, supported by positive net current assets and modest liabilities. There are no overdue filings or regulatory compliance issues. While the company is very young and small in scale, the financials indicate it is solvent and able to meet short-term obligations.

2. Key Concerns:

• Reliance on director loans: Current liabilities include £1,982 of director loans, indicating potential reliance on shareholder funding rather than operational cash flow.
• No employees and limited fixed asset base: The company has no employees and limited tangible assets, which may suggest a very small operational scale and dependency on the director’s involvement.
• Limited profitability data: The profit and loss account has not been filed, restricting insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Consistent growth in net assets and net current assets: Net current assets improved from negative £684 in 2023 to positive £2,862 in 2024.
• Adequate liquidity position: Cash balance increased significantly to £6,025 at the latest year-end, exceeding current liabilities of £3,163.
• Compliance: All statutory accounts and confirmation statements have been filed on time, indicating good governance and regulatory compliance.
• Full ownership and control by a single director/PSC simplifies governance and decision making.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow statements to assess operational profitability and sustainability, which are currently unavailable.
• Investigate the nature and terms of director loans to understand the company’s funding structure and potential repayment risk.
• Confirm business plan viability and market position in the video production sector (SIC 59112), as the company has no employees and modest asset base.
• Assess any contingent liabilities or off-balance sheet commitments that could impact solvency.