OLD LEIGH LIMITED

Risk Rating: HIGH Justification: The company exhibits balance sheet insolvency as of March 31, 2025, with net liabilities of £1,090 and net current liabilities of £5,090. This indicates that the company's current liabilities exceed its current assets, raising immediate concerns about its ability to meet short-term obligations without external support or asset disposals.

Key Concerns: * Liquidity Deterioration: There has been a severe contraction in current assets, falling from £87,414 in 2024 to £20,197 in 2025. While current creditors also fell, the resulting net current liability position of (£5,090) suggests a severe strain on working capital and immediate liquidity. * Balance Sheet Volatility and Insolvency: The company has oscillated between positive and negative net assets over the last three years (negative £7,120 in 2023, positive £9,564 in 2024, negative £1,090 in 2025). This volatility, combined with the current negative equity position, points to structural financial instability. * Concentrated Control and Director Loans: Sam Edward Holland holds over 75% of the shares and voting rights. The latest accounts also reveal an unsecured, interest-free director's loan of £1,578 advanced to Mr. Holland during the year. Related-party transactions in a tightly controlled, financially stressed micro-entity require scrutiny regarding potential preferential treatment or cash extraction.

Positive Indicators: * Long-Term Debt Elimination: The company successfully cleared its long-term creditors, reducing the balance from £26,620 in 2024 to £0 in 2025. This removes a fixed claim on future cash flows and simplifies the capital structure. * Regulatory Compliance: The company is fully up to date with its statutory filings. Accounts and confirmation statements are filed on time, with no overdue flags, which suggests the directors are maintaining basic administrative and governance compliance. * Operational Continuity: The business has been operational since 2012 and survived a previous period of negative net assets in 2023, suggesting underlying operational resilience or the availability of informal financial support from directors/ shareholders to continue trading.

Due Diligence Notes: * Going Concern Basis: The accounts were prepared on a going concern basis despite the net liability position. It is critical to investigate whether this basis is supported by formal director loan commitments or a written assurance of financial support from the PSC (Mr. Holland) to cover the £5,090 net current liability shortfall. * Profitability and Cash Flow: As a micro-entity, the company files a simplified balance sheet with no Profit & Loss account. An investor must request management accounts to understand if the drop in current assets was driven by operating losses, a reduction in debtors, or the intentional paydown of short-term creditors. * Post-Year-End Rebrand: The company changed its name from AUTHOR STUDIOS LTD to OLD LEIGH LIMITED in August 2025 (after the financial year-end). This rebranding, alongside the elimination of long-term debt, could signify a strategic pivot, a restructuring of the business model, or preparation for a sale. The rationale and financial implications of this change require investigation.