Company Number: 14697969

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net liabilities of £83,653 and shareholders' funds deeply negative at £83,753 as at 31 March 2024. Current liabilities exceed current assets by a large margin when considering total liabilities, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative net assets position (£-83,653) reflecting accumulated losses or funding deficits, indicating financial distress.
• High long-term creditor balances (£182,530) compared to total assets, suggesting reliance on external financing or overdue payables.
• The company is newly incorporated (March 2023) with only one year of financials, limiting historical performance data and increasing uncertainty regarding operational sustainability.

3. Positive Indicators:

• Current assets of £22,247 and cash balances of £14,064 provide some liquidity cushion in the short term.
• The company has complied with filing requirements on time, showing no regulatory compliance issues to date.
• The director has declared the going concern assumption appropriate, implying some confidence in future operational viability.

4. Due Diligence Notes:

• Investigate the nature and terms of the £182,530 creditors due after more than one year to assess repayment risk and any potential contingent liabilities.
• Clarify the causes of the negative equity position, including whether losses are operational or related to start-up investments or loans.
• Review the business plan and cash flow forecasts to understand how the company intends to improve solvency and profitability.
• Confirm the director’s background and financial support capabilities, given the single director and sole significant controller status.
• Assess the company's revenue generation and client base given its industry classification (support activities to performing arts, public houses and bars) and its very recent incorporation.