2ND PART PRODUCTIONS LTD

Executive Summary

2ND PART PRODUCTIONS LTD demonstrates a low risk profile with a stable liquidity position and compliance with statutory requirements. The company’s small scale and lack of audited financials warrant further review of operational performance and cash flow sustainability. Overall, the evidence suggests financial stability but limited scale and reliance on a single director should be considered in investment decisions.

2ND PART PRODUCTIONS LTD - Analysis Report

Company Number: NI678790

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: LOW
   2ND PART PRODUCTIONS LTD shows a solid net current asset position that has improved consistently over the last three years, with no overdue filings or indications of insolvency. The company’s current assets comfortably exceed current liabilities, suggesting a stable liquidity profile.

2. Key Concerns:

• Very small scale of operations: The company employs only one person (the director) and operates with minimal share capital (£1.00), which may limit operational capacity and growth potential.
• Absence of audited accounts: Although exempt under size criteria, lack of audit reduces external assurance on financial statement accuracy.
• Dependence on director: With a single director and employee, operational continuity could be vulnerable to personal circumstances.

3. Positive Indicators:

• Consistent improvement in net current assets and shareholders’ funds over four years (from £231 in 2021 to £30,097 in 2024).
• Healthy liquidity position with cash balances increasing to £28,684 in 2024 and current assets exceeding current liabilities by a significant margin.
• Compliance with filing deadlines: Accounts and confirmation statements are up to date with no overdue returns.
• Clear accounting policies and adherence to FRS 102 standard, enhancing reliability of reported figures.
• Established presence in a defined niche (SIC 59111: Motion picture production), with the director’s occupation aligned with the business activity.

4. Due Diligence Notes:

• Review the underlying revenue and profit trends in detail (profit and loss account is not included in filings), to assess operational sustainability beyond balance sheet strength.
• Investigate the nature and collectability of trade debtors (£12,006), to confirm liquidity assumptions.
• Assess the company’s cash flow cycle and reliance on director input or external financing.
• Confirm no undisclosed contingent liabilities or related party transactions that could affect financial stability.
• Consider risks associated with the micro company status, including limited disclosure and minimal external oversight.
• Validate ongoing contracts or pipeline in the motion picture sector to evaluate future earnings potential.