Company Number: 15054800

Analysis Date: 2025-07-20 12:50 UTC

1. Risk Rating: HIGH

Justification: The company’s financial statements indicate significant negative net current assets (-£484,036) and an equivalent negative net asset position (-£394,266) despite being classified as a micro-entity. This suggests the company has liabilities far exceeding its current assets, raising serious solvency concerns. The absence of current assets (notably cash or equivalents) further exacerbates liquidity risk. Additionally, the company is very recently incorporated (August 2023) with limited operating history, limiting assessment of operational stability.

2. Key Concerns:

• Severe negative net current assets and net asset deficiency indicate inability to meet short-term obligations without additional funding.
• No reported current assets to cover £484k of current liabilities, signaling acute liquidity stress.
• Very short operating history with only 2 employees and no revenue or profit data disclosed, making sustainability and business model viability unclear.

3. Positive Indicators:

• Accounts and confirmation statement filings are up to date, showing regulatory compliance so far.
• Directors appear to have relevant business experience (film producer/director and company director).
• Ownership is split between two corporate entities with control rights, potentially indicating financial backing or strategic alignment.

4. Due Diligence Notes:

• Investigate nature and terms of current liabilities (£484k) to understand if these are trade payables, loans, or related party transactions.
• Clarify absence of current assets: confirm if there is any cash, receivables, or other liquid resources off-balance sheet or subsequently injected.
• Obtain management commentary or strategic report (if any) on business plan, funding sources, and timeline to profitability.
• Assess director and shareholder financial support commitments given the large negative working capital.
• Verify no director disqualifications or regulatory issues associated with directors or controlling entities.