Company Number: 14357003

Analysis Date: 2025-07-29 15:07 UTC

1. Risk Rating: MEDIUM
   RAEC Media Limited is a very young private limited company with limited financial history but shows positive net assets and working capital. However, the significant reduction in current assets and cash from 2023 to 2024, alongside a drop in net assets, introduces liquidity risk. The company is small, with a single employee/director, which may affect operational stability and resilience.

2. Key Concerns:

• Liquidity Decline: Cash reserves fell sharply from £33,231 in 2023 to £8,133 in 2024, with current liabilities also reduced but still significant at £7,487, indicating tighter liquidity.
• Limited Scale and Single Director: The company employs one person (the director), which could pose operational risks due to limited capacity and potential dependence on a single individual.
• Profit and Loss Account Omitted: The profit and loss account was not filed with the registrar, limiting insight into profitability and cash flow generation, making financial health assessment incomplete.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Despite reductions, net assets remain positive at £7,299 and net current assets positive at £5,296, indicating solvency on a balance sheet basis.
• No Overdue Filings: Both annual accounts and confirmation statements are filed on time, showing compliance with regulatory requirements and good governance.
• Full Ownership by Director: Clear ownership (75-100% shares and voting rights by Mr. Renato Cavallaro) simplifies governance and decision-making.

4. Due Diligence Notes:

• Obtain and review the profit and loss account or internal management accounts to assess profitability and cash flow trends.
• Investigate reasons for the large decrease in cash and current assets between 2023 and 2024 to understand operational cash flow dynamics and any unusual transactions.
• Confirm the sustainability of the business model in television programme production with such a small team and limited fixed assets.
• Review director’s background and financial support to the company given the director is sole controller and employee.
• Verify any potential contingent liabilities or off-balance sheet commitments not disclosed in the accounts.