Company Number: SC764207

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £24,430 as of the latest accounts. The current liabilities far exceed current assets, indicating poor liquidity and an inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows a net deficit of £24,430, raising serious solvency risks.
• Current Liabilities Exceed Current Assets by a Large Margin: £28,464 in current liabilities against £2,750 in current assets suggests immediate cash flow challenges.
• Limited Operating History and Scale: Incorporated in March 2023, with micro-entity accounts only, indicating an early-stage company with limited operational track record and financial depth.

3. Positive Indicators:

• Single Director and Shareholder with Full Control: Clear governance structure with one individual (Fraser Lawson) controlling 75-100% shares and voting rights, which may facilitate swift decision-making.
• No Overdue Filings: Accounts and confirmation statements are up to date, suggesting regulatory compliance in reporting.
• Micro-entity Status: Reduced filing requirements and costs, appropriate for a small start-up phase.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if these are operational trade payables, loans, or other debts and their maturity profile.
• Understand the business model and revenue generation plans, given the early stage and current negative equity.
• Review cash flow statements or management accounts, if available, to evaluate liquidity trends post-filing date.
• Confirm whether any financial support, loans from directors, or capital injections are planned or have occurred since the last accounts date.
• Assess the director’s experience and capacity to sustain and grow the business in performing arts.