Company Number: 15069353

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: HIGH
   Justification: The company has a net current asset position of only £1, negligible cash reserves (£4,834), and has explicitly prepared its financial statements on a non-going concern basis indicating imminent cessation of trading. Substantial current liabilities (£694,031) nearly equal to current assets (£694,032) highlight tight liquidity. The directors’ statement that production is complete and the company expects to cease trading is a significant solvency and operational risk indicator.

2. Key Concerns:

• Going concern uncertainty: The directors have explicitly stated the financial statements are not prepared on a going concern basis, signaling cessation of operations and material uncertainty about the company’s future viability.
• Liquidity constraints: The company has minimal cash and current assets just covering current liabilities, risking inability to meet short-term obligations if collection of debtors is delayed.
• Operational sustainability: The company was incorporated in 2023, has only one accounting period ending in early 2025, and the production activity is complete. The lack of ongoing revenue-generating activity indicates no sustainable business model going forward.

3. Positive Indicators:

• No overdue filings: The company is compliant with filing deadlines and is up to date with accounts and confirmation statements, indicating good governance in terms of regulatory compliance.
• Strong parental control: RSA Films (Holdings) Limited owns 75-100% of shares and voting rights, suggesting strategic backing and potential access to group resources if needed.
• Unqualified audit opinion: Despite the going concern basis disclaimer, the auditor issued an unqualified report with a clear emphasis of matter, which is appropriate and transparent.

4. Due Diligence Notes:

• Investigate the parent company RSA Films (Holdings) Limited’s financial health and willingness/ability to support the company if needed.
• Confirm the collectability and aging profile of trade debtors (£171,538) and related party balances (£28,670) to assess cash flow risks.
• Understand the company’s plans post-production completion, including any wind down or restructuring arrangements.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the small company accounts.