Company Number: 14122143

Analysis Date: 2025-07-29 17:11 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net assets and net current assets, indicating solvency at the balance sheet date. However, there is a significant amount of long-term liabilities relative to total assets, which elevates the risk profile. The small size and limited operating history also constrain the assessment of operational stability.

2. Key Concerns:

• High Long-Term Liabilities: The company has £90,186 in creditors due after more than one year, which is substantial compared to net assets of £40,619. This leverage could pressure future cash flows.
• Single Director and Employee: Operational dependency on one individual (Mr. Timothy David Carter) raises concerns about business continuity and management capacity.
• Limited Financial Transparency: As a micro-entity, the company has not filed a profit and loss account, limiting insight into profitability and cash flow generation.

3. Positive Indicators:

• Positive Net Current Assets: £30,090 net current assets suggest sufficient short-term liquidity to meet immediate obligations.
• Increasing Asset Base: Fixed assets increased from £59,900 to £105,306 indicating investment in business capacity.
• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance adherence.

4. Due Diligence Notes:

• Review the nature and terms of the long-term liabilities to assess repayment schedules and interest burden.
• Obtain or request management accounts or cash flow statements to evaluate operational cash generation and sustainability.
• Investigate the business model given the mixed SIC codes (video production/distribution and freight transport) for clarity on revenue sources and operational risks.
• Confirm whether the director’s occupation as an HGV driver relates to the company’s freight activities or is separate, as this impacts management focus.
• Assess dependence on the single director and plans for succession or operational support.