Company Number: SC678334

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency risk, with net current liabilities of approximately £88k as of the latest financial year end. This negative working capital position, combined with minimal share capital and accumulated losses, suggests an inability to meet short-term obligations without external financing or restructuring.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£161k) far exceed its current assets (£73k), resulting in a net current liability position that raises immediate liquidity concerns.
• Accumulated Deficit: Retained earnings are negative by roughly £88k, indicating sustained losses or write-downs that have eroded shareholder funds.
• Dormant Status Prior to 2023: The company was categorized as dormant until the latest reported year, implying limited or no trading activity before 2023, which may indicate an unproven business model or delayed operational traction.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with its filing obligations, including accounts and confirmation statements, showing sound governance in regulatory compliance.
• Active Directors with Relevant Experience: Directors’ occupations (Producer, Artist, Lecturer) align with the company’s artistic creation SIC code, suggesting management is knowledgeable about the industry sector.
• Some Cash Reserves: Cash holdings of £36.5k provide a liquidity buffer, albeit insufficient relative to liabilities.

4. Due Diligence Notes:

• Investigate the nature and composition of creditors amounting to £161k due within one year to assess repayment schedules and any imminent default risks.
• Understand the source and sustainability of debtor balances (£36.6k), including collectability and whether these are related parties or trade receivables.
• Clarify the reasons for the large accumulated deficit and whether this results from operating losses, impairment charges, or other factors.
• Review management plans or strategies to address liquidity shortfalls and improve operational cash flow.
• Confirm the extent of any contingent liabilities or off-balance sheet obligations that could exacerbate financial stress.