Company Number: 14720503

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: HIGH
   The company shows clear signs of financial distress given net liabilities, minimal cash resources, and director loans as long-term liabilities. Its very recent incorporation and minimal operating history add to uncertainty.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Net liabilities of £425 and negative shareholders’ funds of £435 indicate the company’s liabilities exceed its assets, which is a solvency red flag.
• Minimal Cash Balance and Negative Working Capital: Cash on hand is only £485 with current liabilities at £420, resulting in marginal positive net current assets (£65). However, total liabilities including loans from directors (£490) exceed assets, raising liquidity concerns.
• Dependence on Director Loans: The £490 loan from the director classified as a long-term creditor suggests reliance on related party funding, which may not be sustainable or readily convertible to working capital.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, indicating compliance with statutory requirements.
• Active Status and Clear Ownership: The company is active with a single controlling director/PSC, simplifying governance and decision-making.
• Industry Focus: Operating in telecommunications and media production sectors (SIC codes 61900, 59113, 59112) could offer growth opportunities if operationally scaled.

4. Due Diligence Notes:

• Review Director Loans Terms: Confirm the nature, repayment terms, and security of the £490 director loan. Assess risk of non-repayment or need for capital injection.
• Assess Business Model and Cash Flow Projections: As the company is newly incorporated with no employees and limited financial history, understand the business plan, contracts, and expected cash flow generation.
• Investigate Potential for Capital Raising: Determine if there are plans or prospects for equity funding or external borrowing to improve financial stability.
• Check for Related Party Transactions and Governance Practices: Ensure director transactions are properly authorised and disclosed, given sole control by one individual.