Company Number: 13911060

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets (£-410,414 as of 2024) with liabilities exceeding assets by a large margin. Current liabilities more than double current assets, indicating potential liquidity stress. Additionally, there is a sizeable long-term creditor balance classified as investment (£502,429), suggesting reliance on external funding without clear evidence of profitability or asset backing.

2. Key Concerns:

• Solvency Risk: Negative shareholders' funds and net liabilities indicate the company is insolvent on a balance sheet basis, risking inability to meet obligations without additional capital injection.
• Liquidity Concerns: Current liabilities (£140,355) significantly exceed current assets (£232,370 total assets but current liabilities due within one year are £140,355 plus further long-term liabilities), which may constrain operational cash flow. Although cash has increased, the increase in liabilities and net liabilities is substantial.
• Operational Stability: The company is relatively new (incorporated 2022) but already shows worsening financial position from 2023 to 2024 with net liabilities growing from £179,993 to £410,414. This suggests operational losses or inadequate capitalisation.

3. Positive Indicators:

• The company has increased cash holdings from £38,005 in 2023 to £169,634 in 2024, which may provide some short-term liquidity buffer.
• The director is the sole significant controller and is actively involved, which may provide decisive governance and swift decision-making.
• Compliance appears current with no overdue filings for accounts or confirmation statements, indicating good regulatory discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term investment creditor of £502,429 to understand obligations and repayment schedules.
• Review profit and loss performance and cash flow statements for the last two years to clarify the source of losses and cash flow sufficiency.
• Understand business model viability given the SIC codes (TV production and exhibition activities) and whether revenue streams are sustainable or reliant on further external funding.
• Confirm if there are any contingent liabilities or related party transactions not disclosed in filleted accounts.
• Assess director’s plans for recapitalisation or restructuring given negative equity and growing net liabilities.