Company Number: 14033241

Analysis Date: 2025-07-20 16:49 UTC

1. Credit Opinion: DECLINE
   Cody Studios Acton Ltd exhibits a persistently weak financial position marked by negative net assets and net current liabilities for the last three years. The company’s inability to generate positive working capital and the ongoing net liability position raise significant concerns about its capacity to meet current and long-term obligations. The absence of employees and minimal fixed assets indicate a very limited operational base, adding to credit risk. Without evidence of a turnaround or external support, extending credit is not advisable.

2. Financial Strength:
   The balance sheet shows net liabilities of £9,734 as of the latest accounts (April 2024), improving slightly from a net liability of £15,138 in the prior year but still substantially negative. Current liabilities exceed current assets by £10,190, indicating a strained liquidity position. The company holds negligible fixed assets (£1,596). The company remains a micro-entity but demonstrates ongoing losses retained in accumulated deficits (negative reserves), reflecting continued erosion of shareholder funds.

3. Cash Flow Assessment:
   With current liabilities nearly double the current assets, the company has a clear working capital deficit. This suggests reliance on external funding or owner financing to sustain operations. The absence of employees may limit cash outflows, but also points to minimal revenue-generating activity. The filings do not provide profit and loss data, but the balance sheet trends imply negative operating cash flows. Liquidity risk is high, and the company appears dependent on short-term credit or capital injections.

4. Monitoring Points:

• Watch for improvement in net current assets to positive territory
• Monitor any significant changes in liabilities and creditor terms
• Review future filings for profitability or capital injections
• Track director conduct or changes in ownership/control that may impact governance
• Observe operational scale or employee additions indicating growth or stability