Company Number: 13788494

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and shareholder funds, significant long-term creditors, and very low turnover, indicating severe solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £9,676 at the end of 2023, a slight improvement from prior years but still negative, signaling ongoing erosion of equity.
• High Long-Term Creditors Relative to Assets: Creditors due after more than one year amount to £9,999 in 2023, which is substantially higher than current assets (£323), raising concerns about the company’s ability to meet future obligations.
• Significant Decline in Turnover: Turnover dropped from £45,898 in 2021 to £12,105 in 2023, suggesting operational difficulties or reduced market traction, especially critical in a performing arts sector with no employees.

3. Positive Indicators:

• No Overdue Filings: The company has submitted accounts and confirmation statements on time, indicating regulatory compliance and governance diligence.
• Small Entity Status: As a micro entity, the company benefits from simplified reporting and potentially lower administrative burdens.
• Director and Secretary Stability: The same directors and secretary have been in place since incorporation, which could indicate stable governance at the management level.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment risks and potential restructuring needs.
• Examine cash flow statements (not available here) and bank balances to understand liquidity beyond static balance sheet figures.
• Clarify the business model and revenue generation approach given the low turnover and absence of employees, to assess sustainability.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed.
• Review director backgrounds and related-party transactions given the sole significant control by one individual to evaluate related risks.