GOLDEN REALM PRODUCTIONS LIMITED

Executive Summary

Golden Realm Productions Limited is currently in an early-stage financial strain with negative working capital and equity deficits typical of startup ventures in production industries. While not insolvent, the company must improve liquidity and accelerate revenue generation to stabilize its financial health. Prompt action on cash flow management and capital support is recommended to avoid worsening distress.

GOLDEN REALM PRODUCTIONS LIMITED - Analysis Report

Company Number: 14483709

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment of Golden Realm Productions Limited

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1. Financial Health Score: D

Explanation:
Golden Realm Productions Limited currently exhibits signs of financial distress. Its net liabilities and negative working capital highlight a fragile financial state typical of a startup or early-stage business facing initial operational challenges. While not insolvent, the company is "unwell" in financial terms and requires prompt attention to improve liquidity and equity positions.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	390	Very low cash and receivables; limited liquid resources
Current Liabilities	1,426	Short-term debts exceeding liquid assets
Net Current Assets (Working Capital)	-1,036	Negative working capital—a symptom of cash flow constraints
Net Assets	-1,636	Negative equity indicating accumulated losses or undercapitalization
Shareholders' Funds	-1,636	Equity deficit suggests the company owes more than it owns
Average Number of Employees	0	No staff employed yet, possibly reflecting early-stage operations

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3. Diagnosis

Golden Realm Productions Limited is in the early post-incorporation phase (incorporated Nov 2022), and its financial "vital signs" indicate a startup experiencing initial cash flow strain. The negative net current assets (working capital) and net liabilities suggest the company is operating "below par" financially with a capital deficit. This is not uncommon in a new venture investing in production activities that typically require upfront costs before revenues materialize.

The lack of employees indicates the company may be outsourcing or in setup mode, limiting fixed costs but also potentially delaying revenue generation. The negative equity position could be due to initial losses or unrecouped expenses. The company remains active, with no overdue filings, and the directors have complied with accounting requirements under micro-entity provisions.

In medical terms, the company is in a "pre-symptomatic" or "early distress" phase — not yet failing but showing signs that require intervention to avoid deterioration into insolvency.

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4. Recommendations

• Improve Liquidity:

  • Secure additional working capital through shareholder loans or equity injections to cover short-term liabilities.
  • Negotiate extended payment terms with creditors to ease immediate cash flow pressures.

• Revenue Generation:

  • Accelerate project completions and invoicing cycles to convert production activities into cash inflows.
  • Explore advance payments or pre-sales in television or motion picture production to improve cash inflows.

• Cost Management:

  • Maintain lean operations, avoiding fixed costs until steady revenues are established.
  • Consider temporary cost reductions or deferrals to preserve cash.

• Financial Monitoring:

  • Implement rigorous cash flow forecasting and monthly financial reviews to detect and address liquidity issues early.
  • Engage with accountants or financial advisors to explore grant funding, tax reliefs, or subsidies applicable to media production.

• Capital Structure:

  • Plan for recapitalization if losses persist, ensuring shareholder funds are replenished to restore net asset positivity.

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Executive Summary