Company Number: 15470771

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (£-531) and net current liabilities (£1,314), indicating insolvency at the balance sheet date. Given the company is newly incorporated (February 2024) with only one financial year reported, these early losses and liabilities present a strong solvency risk.

2. Key Concerns:

• Negative net assets and working capital deficit suggest the company cannot currently cover short-term liabilities from current assets.
• No employees and minimal fixed/current assets point to a very limited operational scale and possible undercapitalization.
• Sole director and 75-100% shareholder being related (director Matthew Lloyd and PSC Amanda Lloyd) may raise governance and independence concerns, especially in a small startup environment.

3. Positive Indicators:

• The company is compliant with filing deadlines (accounts and confirmation statements up to date), which reduces regulatory compliance risk.
• Micro-entity status reduces administrative burden and reporting costs, appropriate for a small new business.
• The company operates in a creative/artistic sector (SIC 90030), which may require low initial capital investment.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities (£2,248) to assess if they are trade payables, loans, or shareholder loans, and the repayment terms.
• Clarify the business model and revenue projections to understand the path to profitability and sustainability.
• Review cash flow forecasts and any external funding commitments to confirm liquidity prospects.
• Assess the relationship and roles of the PSC and director to identify any potential conflicts of interest or governance weaknesses.
• Monitor subsequent filings to detect improvements or deterioration in financial position.