BUTTON TIGHT PRODUCTIONS LIMITED

Executive Summary

BUTTON TIGHT PRODUCTIONS LIMITED has made significant financial progress over the past year, recovering from a net liability position to a positive net asset base with strong short-term liquidity. However, its financial health is moderated by a substantial long-term debt burden that requires careful management. With disciplined debt repayment and focus on profitability, the company is positioned to maintain and improve its financial wellness.

BUTTON TIGHT PRODUCTIONS LIMITED - Analysis Report

Company Number: 13612158

Analysis Date: 2025-07-20 14:38 UTC

Financial Health Assessment for BUTTON TIGHT PRODUCTIONS LIMITED

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1. Financial Health Score: B-

Explanation:
BUTTON TIGHT PRODUCTIONS LIMITED shows strong signs of recovery and financial improvement in the latest fiscal year, moving from net liabilities to a solid net asset position. However, the company carries a significant long-term creditor burden, which tempers the overall health grade. The score reflects a business that is regaining financial stability but still faces liquidity and leverage challenges.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£23,442	Healthy net assets indicate positive equity and financial buffer.
Long-term Creditors	£76,065	Significant debt due beyond one year; a symptom of leverage and potential cash flow pressure.
Net Current Assets	£96,451	Very strong working capital, suggesting healthy short-term liquidity and cash flow.
Fixed Assets	£3,056	Modest investment in long-term assets, typical for a micro-entity in artistic creation.
Profit & Loss Reserve	Not separately stated	Presumed positive given net assets improvement; reflects accumulated earnings or capital injection.
Employee Count	1 (Director only)	Minimal staff, low operating overhead, which may help preserve cash flow.

Additional Observations:

• The company transitioned from a net liability position (-£5,281 in 2023) to a positive net asset (£23,442 in 2024), which is a strong sign of financial recovery.
• Current assets increased dramatically to £122,066 in 2024 from £2,166 in 2023, indicating a surge in cash or receivables that improves liquidity.
• Current liabilities rose to £25,616 in 2024 from £2,000 in 2023, but the net current assets remain very robust.
• Long-term creditors climbed sharply from £7,907 in 2023 to £76,065 in 2024, highlighting increased borrowing or financial obligations due over time.

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3. Diagnosis

The financial “vital signs” suggest BUTTON TIGHT PRODUCTIONS LIMITED has recently undergone a significant turnaround, moving from a fragile state with net liabilities to a solid equity position. The company exhibits "healthy cash flow" symptoms evident in its strong net current assets, implying it can comfortably cover its short-term obligations.

However, the "symptom of distress" lies in the sizeable long-term debt, which may pressure future cash flows and limit financial flexibility. This elevated leverage means the company must carefully manage its repayment schedule and ensure sustainable profitability to avoid returning to financial strain.

The company's micro-entity status and minimal staffing level imply a lean operation, probably with tightly controlled costs, which is positive for financial wellness. The sector of artistic creation typically faces variable revenue streams, so maintaining liquidity is crucial.

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4. Recommendations

• Debt Management: Develop a clear repayment plan for the long-term creditors. Explore refinancing options or negotiating terms to ease the debt burden and avoid liquidity crunches.
• Cash Flow Monitoring: Maintain rigorous cash flow forecasting to ensure ongoing coverage of short-term liabilities and debt servicing. The current strong working capital is a good cushion but needs constant management.
• Profitability Focus: Aim to increase earnings steadily to rebuild reserves and reduce reliance on external financing. This might include diversifying revenue streams or increasing project throughput.
• Financial Planning: Consider preparing a detailed budget and financial strategy with scenario analysis to anticipate market fluctuations common in artistic sectors.
• Governance and Compliance: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

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