Company Number: 14762181

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

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to negative net current assets and shareholders' funds within its first financial year, indicating potential solvency concerns.

2. Key Concerns:

• Negative Working Capital: The company reports current liabilities (£19,939) significantly exceeding current assets (£5,166), resulting in net current liabilities of £14,773. This weak liquidity position suggests potential difficulties in meeting short-term obligations.
• Negative Shareholders’ Funds: Total equity is negative (£14,773), driven by accumulated losses, which undermines the company’s financial stability and may indicate reliance on external funding or shareholder support.
• Limited Operational History: Incorporated in March 2023 with just over one year of trading, the company’s short operating history limits visibility on its business sustainability, cash flow generation, and growth prospects.

3. Positive Indicators:

• Compliance with Filing Obligations: All statutory filings, including accounts and confirmation statements, are up to date and not overdue, reflecting sound regulatory compliance.
• No Auditor’s Qualification or Exceptions: The accounts are prepared under the small companies regime and unaudited, but no adverse notes or qualifications are reported.
• Clear Management Structure: Two directors with relevant industry occupations (VFX production assistant and manager) are appointed, and major shareholders are identified, indicating transparency in governance.

4. Due Diligence Notes:

• Investigate Cash Flow Forecasts and Funding Sources: To assess how the company plans to address its negative working capital and equity deficit, including any shareholder loans or external financing arrangements.
• Review Business Model and Revenue Generation: Understand the company's contracts, client base, and pipeline to evaluate operational sustainability and growth potential.
• Assess Directors’ Experience and Related Party Transactions: Given the company’s early stage, examine directors’ backgrounds in the VFX industry and any transactions with related entities, including Hilton Consulting Limited (registered office), to rule out conflicts or financial dependencies.
• Monitor Subsequent Financial Performance: As only one period of financial data is available, ongoing monitoring of future filings will be essential to track improvements or deterioration in financial health.