5DB RECORDS LTD

Executive Summary

5DB RECORDS LTD is a newly incorporated micro entity operating in sound recording and music publishing. It currently shows no revenue and significant losses with a deeply negative net asset position and no liquidity. Given these financials, the company is not creditworthy, reflecting high insolvency risk without clear turnaround or funding.

5DB RECORDS LTD - Analysis Report

Company Number: 15209955

Analysis Date: 2025-07-29 14:17 UTC

1. Credit Opinion: DECLINE. The company 5DB RECORDS LTD shows no turnover since incorporation and reports a significant net loss (£623,640) within its initial 9-month trading period. The balance sheet reveals material negative net assets and net current liabilities, indicating insolvency on a going concern basis. The absence of income and high liabilities with no liquidity or fixed assets presents a very high credit risk. Without evidence of imminent capital injection or operational revenue, the company’s ability to service debt or meet commercial obligations is severely compromised.

2. Financial Strength: The balance sheet is materially weak. Fixed assets and current assets are zero, while current liabilities total £319,494 and longer-term liabilities £304,145, resulting in negative net current assets of -£319,494 and net assets of -£623,638. Shareholders’ funds are deeply negative, reflecting accumulated losses. The company has no tangible or liquid assets to cover liabilities, indicating poor financial resilience and a reliance on external funding or shareholder support.

3. Cash Flow Assessment: With zero current assets and substantial current liabilities, liquidity is nonexistent. The company’s working capital position is highly negative, which would restrict day-to-day operations and creditor payments. The loss of over £600k in less than a year, primarily driven by staff costs and other charges, further drains cash resources. There is no evidence of cash inflows or funding sources, exacerbating concerns on meeting short-term obligations.

4. Monitoring Points:

• Immediate focus on cash flow and liquidity improvements.
• Operational revenue generation or capital infusion plans.
• Changes in management or restructuring to reduce losses.
• Timely filing of accounts and confirmation statements.
• Watch for any director resignations or adverse events affecting control.