CTC CREATIVE COMMS LTD

Executive Summary

CTC CREATIVE COMMS LTD is a micro-sized company with very low and declining revenues, recent operating losses, and minimal liquidity. Its financial profile and lack of active cash flow generation present a high credit risk. Without signs of improved trading performance or stronger cash reserves, the company is not a suitable candidate for new credit facilities at this time.

CTC CREATIVE COMMS LTD - Analysis Report

Company Number: 12817374

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: DECLINE. CTC CREATIVE COMMS LTD is a micro-entity with very limited turnover (£1,654 in the latest year) and a recent loss of £644 after previously modest profits. The company’s revenue is very low and declining year-on-year, indicating limited ability to generate operating cash flow to service debt or credit facilities. There are no current liabilities, but also minimal working capital and no employees, reflecting a very small scale operation. The loss and declining turnover raise concerns about the sustainability of the business model and the management’s capacity to stabilize or grow revenues. Given these factors, the company poses a high credit risk for new lending.

2. Financial Strength: The balance sheet shows net assets of £3,925 as of 31 August 2024, consisting mainly of fixed assets (£4,267) and minimal current assets (£230). There are no current or long-term creditors, which means the company has no outstanding debts but also limited external credit usage. A provision for liabilities of £572 is recorded, reducing net assets somewhat. Shareholders’ funds have decreased slightly from £4,113 the previous year. Overall, the company is solvent but has a small asset base and very thin equity buffer. The fixed assets appear to be the main value store, but the liquidity of these assets is uncertain.

3. Cash Flow Assessment: Current assets are low (£230) and there are no current liabilities, resulting in positive but minimal net current assets. The company’s cash or cash equivalents are not explicitly stated but would be included in current assets and are very small. The absence of staff costs suggests minimal overhead, but also no active human resource investment to drive growth. The downward trend in turnover from £5,286 (2021) to £1,654 (2024) and a recent loss indicate weak cash inflows. Working capital is minimal and shrinking, indicating limited liquidity to cover unexpected expenses or absorb shocks. This weak cash flow profile undermines the company’s ability to meet credit obligations timely.

4. Monitoring Points:

• Turnover and profitability trends: continued decline or losses would exacerbate credit risk.
• Liquidity position: monitor current assets and cash balances closely for signs of stress.
• Provision for liabilities: review the nature and adequacy of these provisions regularly.
• Management actions: any strategic changes to increase revenues or cut costs should be reviewed.
• Filing and compliance: ensure timely accounts and returns to avoid regulatory penalties.