CREATE THEATRE SCHOOL LIMITED

Executive Summary

Create Theatre School Limited is a micro-entity with very weak financial metrics, including negative working capital and negligible equity, indicating a high risk of credit default. The company’s limited scale and poor liquidity position preclude a recommendation for credit approval at this stage. Close monitoring of future financial improvements and operational developments is advised before reconsidering credit facilities.

CREATE THEATRE SCHOOL LIMITED - Analysis Report

Company Number: 12443115

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE
   Create Theatre School Limited exhibits very weak financial health with a net current liability position of £14,454 as of 29 February 2024, indicating an inability to cover short-term liabilities with current assets. The company’s minimal equity of £66 and absence of employees suggest an extremely limited operational scale and resources. Without positive working capital or evidence of profit generation, the company lacks capacity to service debt or meet financial obligations reliably. Credit extension would be high risk.

2. Financial Strength:
   The balance sheet reflects a fragile financial structure. Fixed assets stand at £14,520 but are outweighed by current liabilities of £17,146, resulting in negative net current assets. Shareholders’ funds have increased marginally from £1 to £66 but remain negligible, reflecting minimal retained earnings or capital investment. Overall, the company is undercapitalized with no buffer to absorb financial shocks.

3. Cash Flow Assessment:
   Current assets of £2,692 are insufficient against current liabilities, highlighting poor liquidity and negative working capital. The absence of reported employees and presumably limited trading activity raise concerns over sustainable cash inflows. The company’s micro-entity status and minimal reported assets imply constrained cash generation capacity, increasing the risk of payment delays or defaults.

4. Monitoring Points:

• Monitor future filings for improvements in net current assets and shareholder funds.
• Watch for any significant changes in working capital or cash reserves.
• Review upcoming accounts for evidence of revenue growth or operational scale-up.
• Track director’s strategic plans or external funding to improve financial stability.
• Keep an eye on overdue filings or any changes in company status that may indicate distress.