Company Number: 15127349

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities and net negative assets shortly after incorporation, indicating solvency concerns. The negative equity and director credit balance raise liquidity and operational sustainability questions.

2. Key Concerns:

• Negative net assets of £381 and net current liabilities of £832 suggest the company is insolvent on a balance sheet basis.
• Director credit balance of £841.03 implies reliance on director financing, which may not be sustainable or indicative of external funding.
• The company is very newly incorporated (September 2023) with only micro-entity accounts filed, limiting available financial performance data and increasing uncertainty about operational viability.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory adherence so far.
• The sole director and 100% shareholder appears engaged and has confirmed responsibilities, which can be positive for governance in a small company.
• The company’s business activities (artistic creation and internet retail) can have low fixed cost structures, possibly aiding future cash flow improvements.

4. Due Diligence Notes:

• Investigate the nature and terms of the director credit balance and whether it constitutes a loan, capital injection, or other arrangement.
• Obtain management accounts or cash flow forecasts to assess near-term liquidity and operational plans.
• Clarify the business model and sales pipeline given the micro size and early stage to understand prospects for profitability and growth.
• Confirm absence of overdue filings or regulatory issues beyond those disclosed.
• Review any related party transactions or contingent liabilities not captured in the micro-entity accounts.