CW9 PRODUCTIONS LIMITED

Executive Summary

CW9 PRODUCTIONS LIMITED shows a stable solvency position with positive net current assets and no overdue filings, suggesting low immediate risk. However, a marked decline in current assets and net equity in the latest year warrants further examination to ensure liquidity and operational sustainability. The company’s small scale and concentrated control structure highlight the need for continued monitoring of governance and financial health.

CW9 PRODUCTIONS LIMITED - Analysis Report

Company Number: 12942144

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: LOW

The company demonstrates a solid net asset position relative to its liabilities with no indication of overdue filings or regulatory issues. Its micro-entity status and exemption from audit are consistent with current UK accounting standards for small companies, reducing compliance risk. Although current assets have decreased significantly in the latest year, the company maintains positive shareholders’ funds and net current assets, indicating solvency.

2. Key Concerns:

• Significant reduction in current assets from £152,735 in 2023 to £79,202 in 2024, which could indicate liquidity tightening.
• Decrease in net assets from £143,965 to £64,820 over the same period, potentially reflecting operational losses or capital withdrawals.
• Reliance on a single director who is also the sole person with significant control, which may pose governance concentration risk.

3. Positive Indicators:

• The company remains active and compliant with both accounts and confirmation statement filings, with no overdue obligations.
• Positive net current assets (£63,097) and shareholders’ funds (£64,820) provide a buffer against short-term liabilities.
• The business operates within a specialized niche (support activities to performing arts) which may support operational stability despite its small scale.
• No signs of insolvency proceedings or director disqualifications.

4. Due Diligence Notes:

• Investigate the reasons for the substantial decrease in current assets and net assets between 2023 and 2024, including cash flow statements if available.
• Review related party transactions or shareholder distributions that may have impacted equity levels.
• Confirm the company’s revenue trends and profitability metrics to assess operational sustainability.
• Assess the director’s capacity and governance controls given the concentrated ownership and management structure.
• Verify if any contingent liabilities or off-balance sheet risks exist that are not evident from the micro-entity accounts.