Company Number: 12596749

Analysis Date: 2025-07-29 15:03 UTC

1. Risk Rating: HIGH
   The company shows significant negative net asset values and liabilities exceeding assets by a material margin, indicating financial distress. The balance sheet reveals creditors exceeding total assets, raising serious concerns about solvency and liquidity.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have been negative for multiple years, worsening from -£3,595 in 2023 to -£2,981 in 2024, suggesting ongoing losses or accumulated deficits.
• High Long-Term Creditors: Creditors due after more than one year are substantial (£2,451 in 2024), far exceeding the total current assets (£19), indicating potential solvency risk if liabilities are not manageable.
• Minimal Share Capital and Cash Resources: Share capital is nominal (£3.00), and current assets, including cash equivalents, are extremely low (£19), raising liquidity concerns to meet short-term obligations.

3. Positive Indicators:

• Compliance With Filing Requirements: The company is active and has no overdue accounts or confirmation statement filings, which indicates regulatory compliance and good governance in administrative matters.
• Single Director and PSC Alignment: The sole director and person with significant control is the same individual, which simplifies governance and decision-making processes.
• Consistent Industry Classification: The company operates in a niche sector (sound recording and music publishing), which may have stable demand if managed well.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess whether these represent loans, trade payables, or other liabilities, and the company’s ability to service them.
• Review any off-balance sheet contingencies or guarantees that might exacerbate financial risk.
• Assess the company's business model and revenue streams since the financials indicate persistent losses or capital erosion despite low scale.
• Confirm if any financial support or capital injection is planned or has been provided post the last accounts date.
• Evaluate the director’s strategy for returning the company to profitability or restructuring liabilities.