Company Number: 13820394

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: HIGH
   The company shows extremely minimal net assets (£4), current liabilities nearly equal to current assets, and a concentration of large short-term loans and trade creditors, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£2.35M) almost match current assets (£2.35M), leaving negligible net working capital (£4), suggesting tight liquidity with virtually no buffer.
• Reliance on Short-Term Loans: Significant short-term loans (£1.43M) and trade creditors (£0.27M) dominate liabilities, raising concerns about refinancing risks and ability to meet obligations as they fall due.
• Minimal Equity Base: Shareholders' funds of only £4 imply the company is almost entirely financed through creditors, increasing financial vulnerability and risk of insolvency if cash flow issues arise.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, reflecting compliance with statutory requirements.
• Experienced Directors and Clear Ownership: Directors have stable appointments and ownership is clearly defined, with a corporate parent holding majority control which could provide strategic support.
• Operating in a Defined Niche: The company operates in motion picture production, a specialized sector with potential for growth if projects succeed.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1.43M short-term loans and related party transactions to assess repayment capability and risk of calls on cash.
• Request management commentary or cash flow forecasts to understand how the company plans to meet forthcoming liabilities given the near-zero net working capital.
• Review contracts or agreements underlying the large debtor balance (£2.35M) to verify collectability and timing of cash inflows.
• Assess the financial health and support capacity of the parent company (Box To Box Films Limited) for potential capital injections or guarantees.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations not reflected in the accounts.