Company Number: 12414569

Analysis Date: 2025-07-20 18:58 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing negative net assets and net current liabilities, indicating insolvency risk. The current liabilities significantly exceed current assets, and net liabilities have grown substantially over recent years.

2. Key Concerns:

• Severe Working Capital Deficit: Current liabilities (£156,731) vastly outweigh current assets (£13,182) as of 31 Jan 2024, resulting in a net current liability of £143,549, worsening from prior years. This signals serious liquidity issues and potential inability to meet short-term obligations.
• Negative Shareholders’ Funds: Shareholders’ funds have deteriorated from a positive £15,332 at incorporation in 2020 to a negative £124,891 in 2024, reflecting accumulated losses and erosion of equity.
• High Deferred Income and Related Party Loans: Deferred income constitutes the largest portion of current liabilities (£130,634), suggesting advanced payments or contract liabilities that require fulfilment. Additionally, related company loans have increased, which may indicate reliance on intra-group funding and potential cash flow constraints.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Stable Director and Ownership: Single director and 100% shareholder control by Mr. Huw Williams provides clear accountability and potentially streamlined decision-making.
• Tangible Fixed Assets Present: The company holds tangible fixed assets valued at £28,008, which could provide some security for creditors or potential liquidation value.

4. Due Diligence Notes:

• Investigate the nature and terms of the deferred income balance to assess timing and risk of recognizing this as revenue or refund liabilities.
• Review the related party loan agreements for repayment terms, interest, and conditions to understand funding sustainability.
• Examine cash flow statements and management accounts (if available) for evidence of ongoing operational cash generation or further liquidity pressures.
• Clarify the business model and market position in the performing arts sector to assess operational viability given financial challenges.
• Confirm absence of director disqualifications or regulatory issues not disclosed in the filings.