Company Number: 14948738

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated with a negative net asset position (£134,450 net liabilities), negative working capital (£438,834 net current liabilities), and significant director loans (£994,763 owed to directors). These factors indicate solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net liabilities and current liabilities exceeding current assets suggest poor financial stability and potential difficulties meeting short-term obligations.
• High Director Loans: Nearly £1 million owed to directors indicates reliance on related party funding, which may not be sustainable or formally secured.
• Deferred Tax and Provisions: Deferred tax liability of £87,495 and provisions indicate future cash outflows, further stressing liquidity.

3. Positive Indicators:

• Substantial Fixed Assets: Tangible fixed assets of £493,411 provide some asset backing, albeit illiquid.
• No Overdue Filings: Compliance with filing deadlines and no overdue accounts or confirmation statements reflect good governance practices.
• Experienced Leadership: Directors hold significant control and have confirmed support for ongoing operations, which may aid going concern.

4. Due Diligence Notes:

• Verify the nature and terms of director loans, including repayment schedules and interest arrangements.
• Assess the company’s cash flow projections and business plan to confirm the directors’ going concern assertion.
• Review the sustainability and collectability of the debtor balance (£944,951) to evaluate liquidity risk.
• Confirm details of provisions and deferred tax liabilities to understand timing and impact on cash flows.
• Investigate the operational model and client base given the SIC code (post-production activities) to assess revenue generation potential.