Company Number: 14309740

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with persistent net liabilities exceeding £34,000 and negative net current assets. This financial position signals an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have worsened slightly from £34,692 in 2023 to £35,076 in 2024, indicating ongoing losses or capital erosion.
• Poor Liquidity Position: Current liabilities (£35,090) far exceed current assets (£1,014), resulting in negative working capital, raising concerns about cash flow sufficiency to cover immediate debts.
• Minimal Operational Scale and Revenue Evidence: With only two employees and micro-entity status, limited financial data and minimal asset base raise questions about sustainable operations and ability to generate cash flow.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating governance discipline.
• Stable Directorship and Ownership: The principal director holds full control and has maintained consistent involvement since incorporation, which can support continuity in management decisions.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, suggesting no immediate regulatory distress.

4. Due Diligence Notes:

• Investigate Underlying Cause of Persistent Losses: Review detailed profit and loss accounts or management accounts to understand revenue streams, cost structure, and reasons for ongoing deficit.
• Assess Cash Flow and Funding Arrangements: Confirm if there are any related party loans, shareholder funding, or external financing mitigating liquidity pressures.
• Evaluate Business Model and Market Position: Given the SIC code for post-production activities, ascertain contracts, client base, and prospects for scaling operations to improve viability.
• Review Director’s Future Plans and Capital Injection Potential: Understand if there are plans for equity infusion or restructuring to address net liabilities.
• Confirm No Director Disqualification or Regulatory Issues: Although no records indicate disqualification, verify director conduct to ensure governance standards.