CLEM PRODUCTIONS LTD

Executive Summary

CLEM PRODUCTIONS LTD is a dormant entity with ongoing negative net assets and reliance on director loans, demonstrating poor financial health and no operational cash flow. The company’s financial position and lack of trading history present a high credit risk. Credit facilities are not recommended until there is clear evidence of business activity and financial improvement.

CLEM PRODUCTIONS LTD - Analysis Report

Company Number: 13667662

Analysis Date: 2025-07-20 11:53 UTC

1. Credit Opinion: DECLINE
   CLEM PRODUCTIONS LTD is a very young private limited company classified as dormant with no trading activity reflected in the accounts. It shows persistent net liabilities (£15,445 in 2023) and negative working capital, indicating financial distress and an inability to meet short-term obligations. The company has no employees and relies on director loans to fund its liability. There is no evidence of revenue generation or operational cash flow to support debt servicing. Given the ongoing losses, negative equity, and lack of trading history, extending credit would pose high risk.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Current liabilities (£18,631) significantly exceed current assets (£3,186), resulting in net current liabilities of £15,445 as of October 2023, improving slightly from £22,180 in 2022 but still negative. Shareholders' funds remain negative, indicating accumulated losses with no retained earnings or capital injection. Investments held in 2022 were disposed by 2023. The company is essentially insolvent on a balance sheet basis and depends on director loans to cover liabilities.

3. Cash Flow Assessment:
   Cash on hand is minimal (£3,186), with no trading revenues or operating cash inflows reported. The company has no employees, and operating expenses appear to be funded by director loans (£13,834). This external funding source is not sustainable for credit risk purposes since there is no demonstrated ability to generate cash from business operations. The liquidity position is weak and cash flow insufficient to support debt repayment or new credit facilities.

4. Monitoring Points:

• Track any changes in trading status from dormant to active and review subsequent financial performance.
• Monitor director loan balances and any capital injections or repayments.
• Watch for improvements in net current assets and shareholders' funds indicating financial stabilization.
• Review future filings for evidence of revenue generation or changes in business model that improve cash flow.
• Assess any significant changes in management or ownership that might affect financial stewardship.