AZIMUTH PRODUCTIONS LTD

Executive Summary

Azimuth Productions Ltd exhibits a solid financial position with strong liquidity, positive working capital, and growing equity, reflecting healthy operational and financial management for a small private company. However, the company’s small scale and concentrated ownership introduce risks that could be mitigated through diversification and enhanced governance. Maintaining up-to-date filings and cash reserves positions the company well to sustain stability and consider measured growth opportunities.

AZIMUTH PRODUCTIONS LTD - Analysis Report

Company Number: 12795799

Analysis Date: 2025-07-20 11:55 UTC

Financial Health Assessment – AZIMUTH PRODUCTIONS LTD (As of 31 August 2024)

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1. Financial Health Score: B

Explanation:
Azimuth Productions Ltd demonstrates a solid financial footing with positive net current assets and net assets increasing year-on-year. The company maintains a healthy cash reserve relative to current liabilities, indicating good liquidity. However, given its small scale, single director control, and reliance on limited assets, further diversification and growth would be beneficial to improve resilience.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Current Assets	125,157	Adequate short-term resources to meet liabilities. Increasing trend over past years suggests growth.
Cash and Cash Equivalents	103,843	Strong cash position provides a buffer for operational needs and unexpected expenses.
Current Liabilities	69,972	Debts due within one year; manageable given cash and current assets.
Net Current Assets	55,185	Positive working capital indicates the company can cover short-term obligations comfortably.
Net Assets (Equity)	55,185	Reflects overall company value; positive and rising, showing equity growth and retained earnings.
Share Capital	25	Minimal share capital, typical for a micro/small private limited company.
Average Employees	1	Very small workforce, indicating a lean operation or sole proprietorship structure.

Liquidity: The company’s cash covers approximately 148% of current liabilities, a healthy sign of liquidity and operational flexibility.

Profitability: Profit and loss details are not filed, but increasing retained earnings (P&L reserve) suggest ongoing profitability or positive financial results.

Leverage: No long-term liabilities noted; low leverage reduces financial risk but may limit growth capacity.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow and Liquidity: The company shows a "healthy pulse" with cash reserves exceeding short-term debts, ensuring smooth day-to-day operations without liquidity stress.

• Positive Working Capital: The net current assets indicate the business has more short-term assets than liabilities, a key sign of good operational health.

• Stable Equity Growth: The retained earnings and net assets have steadily increased, showing the company retains profits and builds financial strength rather than bleeding capital.

• Small Scale and Concentrated Control: With one director who also holds 75-100% control, decision-making is streamlined but may carry concentration risk if key person dependency exists.

• Limited Asset Base: The absence of fixed assets suggests the company operates a service model with minimal capital investment, which can be good for flexibility but may limit collateral for financing.

• Filing Compliance: All filings are up to date, indicating good governance and compliance, reducing regulatory risk.

• Risk Factors: The company’s small size and single employee structure may render it vulnerable to operational disruptions or market shifts. Lack of detailed profit and loss data restricts full profitability assessment.

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4. Recommendations: Steps to Improve Financial Wellness

• Diversify Revenue Streams: Explore new clients, sectors, or services within performing arts support to build resilience against market fluctuations.

• Build Fixed Assets or Intellectual Property: Consider investing in assets or proprietary tools that could provide competitive advantage and increase company valuation.

• Strengthen Governance: While single control allows agility, consider forming an advisory board or bringing in additional directors to mitigate concentration risk.

• Enhance Financial Reporting: Provide fuller financial disclosures including profit and loss statements to improve transparency for stakeholders and potential financiers.

• Maintain Cash Reserves: Continue prudent cash management to sustain liquidity, especially given the small employee base and potential operational risks.

• Plan for Growth Carefully: Evaluate financing options if expansion is planned, balancing low leverage with growth capital needs.

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