Company Number: 12475343

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Creative Rights Management Limited demonstrates a stable net current asset position and positive shareholders' funds, indicating a capacity to meet short-term liabilities. However, the company’s cash balance has declined significantly over the past year from £293k to £74k, and current liabilities have also decreased markedly, suggesting reduced activity or restructuring of payables. The business is a single-director entity with a related party funding arrangement, which increases reliance on the principal owner for liquidity. Therefore, approval is conditional on monitoring cash flow stability and confirming ongoing operational revenue generation.

2. Financial Strength:
   The company has modest financial strength consistent with a small private limited entity. Share capital is minimal (£100), but shareholders’ funds remain positive at £37,370 as of the latest accounts. The company’s net current assets have decreased slightly but remain positive (£37,370 in 2024 vs. £44,774 in 2023). There are no fixed or long-term liabilities reported, which reduces leverage risk. The significant reduction in cash and current liabilities from 2023 to 2024 should be investigated as it may reflect a change in business scale or creditor management.

3. Cash Flow Assessment:
   Cash at bank declined significantly from £293,190 in 2023 to £73,640 in 2024, which could indicate cash burn or investment in operations/assets not reflected on the balance sheet. Debtors are low (£1,912), and trade creditors are also low (£338), suggesting limited ongoing trading or tight creditor control. The company’s working capital remains positive but reduced. The director’s funding (interest-free loans with no fixed repayment) provides a liquidity buffer but is not a sustainable external financing source. Monitoring actual operating cash flows and the ability to generate revenue is critical.

4. Monitoring Points:

• Cash balances and cash flow movements each quarter to detect liquidity stress.
• Revenue and debtor turnover to ensure sustainable operations.
• Related party transactions and director funding terms to assess dependency risks.
• Current liabilities trends to determine creditor confidence and payment practices.
• Filing of next accounts and confirmation statement on time to confirm compliance and operational status.