Company Number: 14812774

Analysis Date: 2025-07-29 14:14 UTC

1. Credit Opinion: APPROVE (with caution) CW Entertainments Limited is a newly incorporated private limited company (incorporated April 2023) with a short operating history. Its latest filed accounts to April 2024 show a positive net asset position and net current assets, indicating a sound short-term financial position. The company holds cash balances exceeding current liabilities, demonstrating liquidity to meet short-term obligations. The business is owner-managed with a single director and sole shareholder, Chloe Baker, who controls voting and appointment rights, suggesting clear management accountability. However, the lack of profit and loss details limits assessment of profitability and operational cash flow sustainability. Given the company’s small size, limited trading history, and modest net assets, credit approval is recommended but with limits and ongoing monitoring.

2. Financial Strength:

• Net assets stand at £17,637, comprising mainly retained profits (£17,537) and minimal fixed assets (£1,119).
• The company has current assets (£99,039 cash) exceeding current liabilities (£82,521), resulting in positive net current assets of £16,518.
• Share capital is nominal (£100), consistent with a small start-up.
• The balance sheet reflects a sound liquidity position but limited capitalization and fixed asset base.
• The company qualifies as a small company and has filed under the small companies regime with exemption from audit.
• Overall, the financial strength is modest but stable, reflecting early-stage operations.

3. Cash Flow Assessment:

• Cash at bank of £99,039 comfortably covers short-term creditors of £82,521.
• Positive net current assets indicate sufficient working capital to meet liabilities as they fall due.
• No detailed profit and loss or cash flow statement provided, so operational cash generation cannot be fully assessed.
• The company employs only one person (the director), likely controlling costs tightly.
• Given the cash position vs. liabilities, liquidity risk is low at present.

4. Monitoring Points:

• Track profitability and cash flow generation in subsequent accounts to confirm operational viability.
• Monitor current liabilities closely relative to cash and receivables to avoid liquidity squeeze.
• Review director’s credit and operational conduct, given sole control by Chloe Baker.
• Observe timely filing of annual accounts and confirmation statements to maintain regulatory compliance.
• Assess any increase in borrowings or contingent liabilities that may impact creditworthiness.