Company Number: 12559422

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: APPROVE with caution. Cubitt Media Ltd demonstrates a sound balance sheet with positive net assets and net current assets, indicating the company can meet its short-term liabilities. However, a notable reduction in cash reserves and net assets compared to the prior year suggests some weakening liquidity and profitability trends. The company is small, with only one employee and limited fixed assets, which may constrain its operational resilience. Continued close monitoring of cash flow and creditor payment patterns is advised.

2. Financial Strength: The company has net assets of £25,647 and net current assets of £23,551 as of 30 April 2024, showing a solid equity base relative to its size. The decrease in net assets from £29,041 to £25,647 over the year indicates some erosion of retained earnings or possible losses. Fixed assets are minimal (£2,795), consistent with a service-focused business. Current liabilities have reduced markedly from £20,019 to £5,443, improving short-term solvency. Overall, the balance sheet remains stable but shows signs of modest decline.

3. Cash Flow Assessment: Cash on hand fell from £45,615 to £27,244, a significant reduction that could impact liquidity if the trend continues. Debtors increased to £1,750 but remain low, suggesting modest receivables exposure. Current liabilities are low and manageable. Net current assets remain positive, supporting working capital adequacy. However, the decline in cash requires attention to ensure ongoing ability to service debts and operational expenses.

4. Monitoring Points:

• Continued decline in cash reserves—evaluate cash flow forecasts and working capital management.
• Profitability trends and retained earnings movement in future accounts filings.
• Changes in debtor and creditor levels to identify any emerging credit risk.
• Operational scale and staff levels, considering only one employee, to assess business continuity risk.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.