Company Number: 13486657

Analysis Date: 2025-07-20 14:49 UTC

1. Credit Opinion: DECLINE. CMAK FILMS LTD shows a negative net asset position worsening over the last two years, indicating accumulated losses and an erosion of equity. Despite a large increase in current assets in the latest year, significant long-term liabilities and provisions create negative net liabilities. The company’s micro size and single employee base suggest limited operational scale and resilience. Overdue accounts filing for the latest period also raises governance concerns. These factors collectively indicate a weak financial position and elevated credit risk, unsuitable for credit facility approval at this stage.

2. Financial Strength: The balance sheet reveals net liabilities of £17,073 as of 30 June 2023, deteriorating from £3,918 net liabilities the prior year. Current assets have increased markedly to £3.14M, driven likely by receivables or cash, but current liabilities remain substantial at £1.72M with additional long-term creditors of £1.3M and provisions of £150k. The company’s negative equity and increasing liabilities highlight poor financial strength and reliance on external financing or shareholder support to sustain operations.

3. Cash Flow Assessment: The large net current assets (£1.47M) suggest some short-term liquidity, but the presence of significant long-term liabilities and provisions indicates cash flow pressures beyond one year. The micro entity’s minimal staffing and scale imply limited internal cash generation capacity. The overdue accounts filing also signals potential administrative or cash management issues. Overall, working capital appears adequate currently but not on a sustainable footing given the overall negative net assets and provisions.

4. Monitoring Points:

• Timely filing of future accounts and confirmation statements to ensure transparency and compliance.
• Trends in net assets and shareholder funds to detect further erosion or recovery.
• Changes in long-term liabilities and provisions to assess financial commitments.
• Cash flow generation from operations given the small scale business.
• Director’s conduct and any changes in ownership or control affecting governance.