LONDON SHOW CHOIR LIMITED
Executive Summary
London Show Choir Limited is a recently incorporated private limited company in the performing arts sector with a stable financial footing evidenced by positive net current assets and full regulatory compliance. While the company is in its infancy with limited financial history, current cash and equity levels provide a low solvency and liquidity risk profile. Further due diligence on operational performance and liability structure is recommended to fully assess sustainability.
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This analysis is opinion only and should not be interpreted as financial advice.
LONDON SHOW CHOIR LIMITED - Analysis Report
Risk Rating: LOW
London Show Choir Limited, incorporated in October 2023, demonstrates a solvent and liquid position with positive net current assets and adequate cash to cover current liabilities. The company is early-stage but has filed accounts and returns on time and is compliant with regulatory requirements.Key Concerns:
- Early stage of operation: Being a new company with less than one year of operations, financial history is limited, which increases uncertainty around operational sustainability.
- Modest current liabilities: While covered by cash, current liabilities of £27,446 relative to cash of £36,554 warrant ongoing monitoring to ensure liquidity remains sufficient as business scales.
- No income statement provided: The exemption from audit and absence of income statement restrict detailed profitability assessment, thereby limiting insight into revenue generation and operational viability.
- Positive Indicators:
- Positive net current assets (£9,108) and shareholders’ funds (£27,801) indicate a sound equity base and working capital position.
- Tangible fixed assets (£18,693) suggest investment in operational capacity, supporting potential business activities in performing arts.
- Fully compliant with filing deadlines for both accounts and confirmation statements, reflecting good governance and regulatory adherence.
- Ownership and control are clearly held by Pallant Collins Holdings Limited with full voting rights and director appointment powers, indicating a defined management structure.
- Due Diligence Notes:
- Review projected cash flow and business plan to evaluate ability to sustain operations and meet liabilities beyond the initial period.
- Investigate the nature and terms of current liabilities to assess any contingent risks or short-term repayment pressures.
- Obtain or request management accounts or unaudited financials that include income and expense details to better understand operational performance.
- Confirm any related party transactions or commitments from the majority shareholder that may impact financial stability.
- Monitor director conduct and any changes in control or ownership given the company’s new status.
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