AKA FILMS LIMITED

Executive Summary

AKA Films Limited demonstrates a persistently weak financial position characterized by negative equity and working capital deficits, with minimal cash reserves relative to liabilities. The company’s lack of profitability and operational scale raises concerns about its ability to meet short-term obligations and service new credit. Credit facilities are not recommended at this time without significant improvement in financial metrics or capital support.

AKA FILMS LIMITED - Analysis Report

Company Number: 12615695

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: DECLINE
   AKA Films Limited shows persistently weak financial health with negative net current assets (-£620) and negative shareholders’ funds (-£620) over the last four years. The company has minimal cash reserves (£4,280) barely covering its current liabilities (£4,900). No evidence of profitability or equity buildup is apparent, and with no employees, the operational scale appears minimal. The negative working capital position indicates difficulty in meeting short-term obligations without external funding or capital injection. Given this, the company lacks sufficient financial strength and liquidity to confidently service new credit facilities.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Share capital is nominal (£100), and retained losses have eroded equity, resulting in negative shareholders’ funds. The company holds only cash as current assets, no fixed or tangible assets are reported. Current liabilities slightly exceed current assets, indicating net current liabilities of £620. This negative net working capital position is a concern for solvency and suggests reliance on external resources to meet obligations.

3. Cash Flow Assessment:
   Cash reserves have remained flat at £4,280 over four years, while current liabilities remain at £4,900, highlighting a consistent shortfall in liquidity. The absence of growth in cash balances and the negative net current assets point to tight working capital management and potential cash flow constraints. Without incoming cash flows or additional capital, the company may struggle to pay creditors or meet unexpected expenses.

4. Monitoring Points:

• Monitor changes in net current assets and shareholders’ funds for signs of financial improvement or further deterioration.
• Track cash flow trends and working capital adequacy to assess liquidity sustainability.
• Review any forthcoming filings for profit/loss figures or operational scale changes that might indicate business turnaround or expansion.
• Watch for director activity or capital injections that could strengthen the financial base.