Company Number: 14262145

Analysis Date: 2025-07-29 14:57 UTC

1. Risk Rating: MEDIUM
   While REIMAGINE RECORDS LTD maintains positive net assets and current assets exceed current liabilities, there are signs of potential financial instability reflected in a significant reduction in current assets and an increase in long-term creditors. The company's micro-entity status and limited disclosure restrict comprehensive risk assessment.

2. Key Concerns:

• Liquidity Deterioration: Current assets dropped sharply from £134k in 2023 to £19k in 2024, which may indicate cash flow constraints or reduced working capital availability.
• Increase in Long-term Liabilities: Creditors due after one year increased from £50k in 2023 to £1,500 in 2024, but the 2023 figure appears inconsistent with 2024’s much lower figure; this volatility requires clarification.
• Director and Control Changes: Significant shifts in directorship and control occurred, with some directors resigning and a major shareholder holding 75-100% control, potentially concentrating governance risk.

3. Positive Indicators:

• Net Assets Remain Positive: Despite fluctuations, net assets remain healthy at £225k, suggesting the company’s balance sheet is not under immediate threat.
• No Overdue Filings or Regulatory Issues: Accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Stable Employee Base: The company maintains a small but consistent workforce of three employees, which may help operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the significant decline in current assets between 2023 and 2024 to assess liquidity risks more accurately.
• Clarify the discrepancy and nature of long-term creditors, particularly the reduction from £50k to £1,500, to understand financing arrangements and obligations.
• Review the impact of director resignations and changes in significant control on company governance and decision-making processes.
• Request detailed profit and loss information to assess operational performance and sustainability, as this data is not available in the micro-entity accounts.
• Confirm the nature of fixed assets valued at over £200k to evaluate asset liquidity and potential impairment risks.