CUTACROSS MEDIA LIMITED

Executive Summary

CutAcross Media Limited is an early-stage micro-entity demonstrating a solvent but weakening financial position, primarily due to a significant reduction in net current assets and equity. While compliance and director stability are positive, limited financial disclosures and shrinking liquidity introduce some risk. Further financial detail and operational assessment are recommended before investment.

CUTACROSS MEDIA LIMITED - Analysis Report

Company Number: 14311593

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: MEDIUM
   CutAcross Media Limited is a very young micro-entity with limited financial history, exhibiting a significant decline in net current assets and net assets in the latest financial year. While still solvent on paper, the sharp decrease in working capital and equity warrants caution.

2. Key Concerns:

• Sharp Decline in Net Current Assets: Net current assets fell from £38,321 in 2023 to only £529 in 2024, indicating a tightening liquidity position and potential cash flow stress.
• Reduced Shareholders’ Funds: Shareholders’ funds dropped from £47,044 to £28,289 year-on-year, signaling erosion of financial buffer.
• Limited Financial Disclosures: As a micro-entity, the company files minimal financial information (filleted accounts), restricting detailed analysis of profitability, cash flows, and underlying operational performance.

3. Positive Indicators:

• No Filing Overdue: Both accounts and confirmation statements are up to date, reflecting good compliance with statutory requirements.
• Solvent Position: Despite the asset decline, net assets remain positive at £28,289, indicating the company can meet its liabilities at balance sheet date.
• Experienced Directors and PSCs: The two directors, who are also principal shareholders, appear stable and have direct operational roles (producers), potentially ensuring aligned management interests.

4. Due Diligence Notes:

• Obtain detailed profit and loss figures and cash flow statements to assess operational sustainability and cash generation.
• Investigate causes behind the large drop in current assets and net current assets—whether due to asset disposals, increased liabilities, or cash depletion.
• Review any off-balance sheet liabilities or contingent obligations that could affect solvency.
• Understand client contracts, revenue pipeline, and business model viability in the competitive media post-production sector.
• Confirm no director disqualifications or governance issues beyond data provided.