EVENLODE FILMS AND PRODUCTIONS LTD

Executive Summary

Evenlode Films and Productions Ltd, a small and young film production company, demonstrates improving net assets and working capital, signaling some financial strengthening. Nonetheless, limited cash reserves and dependence on unsecured directors’ loans pose liquidity risks that warrant further scrutiny. Regulatory compliance is satisfactory, and no governance issues are evident, but operational sustainability should be monitored closely.

EVENLODE FILMS AND PRODUCTIONS LTD - Analysis Report

Company Number: 13888806

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net current assets and net worth over the last year, indicating some strengthening of financial position. However, cash reserves remain low, and there is material reliance on directors' loan accounts that are unsecured and interest-free, which exposes potential liquidity risk. The company is very young (incorporated 2022) and small-scale, which increases operational risk.

2. Key Concerns:

• Liquidity and Cash Flow: The cash at bank is only £2,075 (2024), a low level relative to current liabilities (£15,729), suggesting potential short-term liquidity constraints.
• Directors' Loan Account Dependence: The company owes and is owed significant sums via directors’ loan accounts (£9,721 receivable, no interest, no fixed repayment), indicating informal financing that may not be sustainable or reliable under stress.
• Provisions for Liabilities: Provisions increased to £8,349 in 2024, which could represent contingent liabilities or future outflows that require further scrutiny.

3. Positive Indicators:

• Improved Working Capital: Net current assets improved from a deficit of £7,133 in 2023 to a positive £7,003 in 2024, showing better short-term financial health.
• Growing Net Assets: Shareholders' funds grew from £12,383 to £31,299 within a year, indicating profitable operations or capital injections.
• No Overdue Filings: Annual accounts and confirmation statements are up to date, reflecting good regulatory compliance and governance practices.
• Stable Ownership and Management: Directors and major shareholders are consistent, with no disqualifications or governance issues apparent.

4. Due Diligence Notes:

• Review the nature and terms of directors’ loan accounts, including the ability and willingness of directors to continue providing financial support if needed.
• Investigate the composition and reason for provisions for liabilities (£8,349), to understand potential contingent risks or upcoming obligations.
• Confirm cash flow forecasts and working capital management practices, given low cash balances relative to obligations.
• Assess revenue growth and profitability trends since incorporation to determine operational sustainability in a competitive film production sector.
• Verify the absence of related party transactions beyond the directors’ loans that could influence financial stability.