Company Number: 13654985

Analysis Date: 2025-07-29 14:47 UTC

1. Risk Rating: HIGH
   The company shows severe deterioration in net current assets and net assets, ending the latest financial year with only £1 in net assets and negative working capital of £12,644. This indicates acute liquidity and solvency risk.

2. Key Concerns:

• Solvency and Liquidity Stress: Net current liabilities have increased from £7,480 in 2023 to £12,644 in 2024, signaling the company may struggle to meet short-term obligations.
• Minimal Equity Base: Shareholders’ funds have eroded from £737 to just £1, suggesting the company has consumed its reserves or incurred losses that have depleted equity.
• Single Director and PSC Concentration: The sole director and 100% owner is Miss Chloe McGee, which concentrates control and may raise governance concerns if there is no independent oversight.

3. Positive Indicators:

• Current Status Active and Compliant: The company is active with no overdue filings for accounts or confirmation statements, indicating regulatory compliance.
• Growth in Fixed Assets: Fixed assets increased from £8,217 to £12,645, showing some investment in longer-term resources.
• Clear Industry Focus: The company is classified under media representation services (SIC 73120), providing clarity on its business model.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and net assets between 2023 and 2024.
• Review detailed cash flow statements if available to assess operational cash generation or reliance on credit.
• Confirm the nature of current liabilities and their maturity profile to assess refinancing or repayment risk.
• Enquire about any related party transactions or director loans that may affect financial stability.
• Assess the business plan and revenue outlook given the company’s young age and micro-entity status.
• Consider director’s experience and plans to address financial challenges given the single-person control.