Company Number: SC683070

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: LOW
   Justification: The company demonstrates a solid net asset position with positive working capital, no overdue filings, and a stable ownership and management structure. The micro-entity filing status and modest scale align with low complexity and risk.

2. Key Concerns:

• Director’s Loan Balance: The company has an interest-free director’s loan outstanding (£6,771 as of 2023 year-end), which could represent a contingent liability if repayment terms change. However, it was repaid shortly after year-end.
• Small Scale and Limited Capital: Share capital is minimal (£1), which may limit financial resilience to shocks despite positive net assets.
• Limited Financial Disclosure: As a micro-entity, detailed financial and operational data is limited, restricting the depth of financial analysis.

3. Positive Indicators:

• Strong Liquidity Position: Current assets (£71,966) significantly exceed current liabilities (£15,981) as of 2023, yielding net current assets of £55,985, indicating good short-term liquidity.
• Growing Equity Base: Shareholders’ funds increased from £37,411 in 2022 to £57,145 in 2023, suggesting retained earnings or capital injections improving solvency.
• Timely Compliance: No overdue accounts or confirmation statements, reflecting good governance and regulatory compliance.
• Stable Leadership and Control: Single director and 100% shareholder with no disqualifications or governance concerns visible.

4. Due Diligence Notes:

• Investigate nature and repayment terms of the director’s loan, including any potential future obligations or related party transactions.
• Review cash flow statements and trading performance if available to confirm ongoing operational sustainability beyond balance sheet snapshots.
• Assess client base, contracts, and revenue streams given the industry classification (film and television production) to evaluate business continuity risks.
• Confirm absence of contingent liabilities or off-balance sheet commitments not disclosed in micro-entity accounts.
• Validate website and contact information currency as part of operational due diligence.