Company Number: 12801157

Analysis Date: 2025-07-20 12:05 UTC

Credit Opinion:
APPROVE with monitoring. Audioplatter Limited shows improving financial strength and positive net current assets, indicating an ability to service short-term obligations. The company is active, with no overdue filings or indications of distress. However, the relatively high level of current liabilities compared to cash requires ongoing monitoring.

Financial Strength:
The company’s balance sheet reflects steady growth in net current assets from £82.6k in 2020 to £227.8k in 2024. Shareholders’ funds have nearly tripled over four years, rising from £82.6k to £227.8k, signaling retained earnings accumulation and capital preservation. Current assets primarily consist of stock (£447.7k), debtors (£392.5k), and cash (£253.3k), balanced against current liabilities of £865.7k. Although the current liabilities are significant, net current assets remain positive, indicating a working capital surplus.

Cash Flow Assessment:
Cash reserves have decreased from £545.6k in 2023 to £253.3k in 2024, which may reflect increased operational expenses or investment in stock and debtors. Debtors have increased substantially, with a notable £250k owed by associates, which presents some concentration risk and potential liquidity timing issues. Trade creditors have decreased, suggesting improved supplier payment management. Overall, liquidity is adequate but requires attention to debtor collection and cash flow timing.

Monitoring Points:

• Track debtor aging and recovery, especially the amounts owed by associates.
• Monitor cash balances and working capital trends to ensure liquidity is maintained.
• Review any changes in creditor terms or increases in current liabilities that could strain cash flow.
• Observe any shifts in stock levels to avoid overstocking or obsolescence.
• Keep an eye on director or shareholder changes and any external economic factors affecting the sound recording and music publishing sector.