Company Number: 15399771

Analysis Date: 2025-07-29 14:58 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and shareholders' funds shortly after incorporation, indicating financial distress and a potential inability to meet short-term liabilities.

2. Key Concerns:

• Negative Working Capital: With current liabilities (£6,862) vastly exceeding cash (£5) and resulting in net current liabilities of (£6,857), liquidity risk is acute.
• Negative Shareholders’ Funds: Retained losses of (£6,957) in the first reporting period suggest the company is not yet profitable and may be incurring operating losses or initial setup costs.
• Limited Operating History: Incorporated in January 2024 and filing first accounts for a 13-month period, the company lacks an operational track record, increasing uncertainty about future sustainability.

3. Positive Indicators:

• Compliance with Filings: All statutory accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Clear Ownership and Control: Two directors with significant shareholdings and control are identified, reducing governance ambiguity.
• Industry Focus on Performing Arts Support: The SIC code 90020 suggests a niche market focus, which may have growth potential if effectively executed.

4. Due Diligence Notes:

• Investigate the nature and terms of the £6,862 creditor amount due within one year to understand immediate obligations.
• Review the company’s business plan and cash flow forecasts to assess how it plans to address current negative working capital.
• Confirm if there are any related party transactions or capital injections planned to improve financial position.
• Assess directors’ backgrounds and experience in the performing arts support sector to evaluate operational capability.
• Monitor future filings for signs of revenue generation or further capital raises.