GOODWILL ENTERTAINMENTS UK LTD

Executive Summary

Goodwill Entertainments UK Ltd has shown a positive financial trajectory from initial losses to a small net asset position, but liquidity remains tight with minimal working capital. The company’s ability to meet short-term obligations is constrained, warranting conditional credit approval with close cash flow monitoring. Ongoing reviews of profitability and operational cash flow will be critical to ensure continued creditworthiness.

GOODWILL ENTERTAINMENTS UK LTD - Analysis Report

Company Number: 13790334

Analysis Date: 2025-07-20 17:05 UTC

1. Credit Opinion: APPROVE with conditions. Goodwill Entertainments UK Ltd is a micro private limited company with a short trading history since incorporation in December 2021. The company has demonstrated a positive turnaround from net liabilities in 2021 to net assets of £19,132 by March 2024, indicating improving financial health. However, the very narrow net current assets of £1,491 as of the latest accounts and the significant current liabilities nearly equal to current assets suggest tight liquidity. Conditions for credit approval would include monitoring cash flow closely and requesting updated management accounts to confirm ongoing liquidity and trading performance.

2. Financial Strength: The balance sheet shows modest fixed assets of £32,641 and net assets of £19,132, reflecting a small but positive equity base. The company improved from a net liability position of (£640) in 2021 to positive shareholders’ funds, supported by an increase in current assets from £15,000 to £173,734 over the period. The accruals and deferred income remain consistent at £15,000, which should be considered in evaluating true liquidity. Overall, the company is financially fragile but moving in a positive direction with improved net asset position and shareholder equity.

3. Cash Flow Assessment: Current assets (£173,734) slightly exceed current liabilities (£172,243), yielding a minimal net working capital of £1,491, indicating minimal buffer for short-term obligations. The close match between current assets and liabilities implies potential cash flow pressure and limited flexibility in meeting unexpected expenses or debt repayments. The company employs one staff member, so payroll obligations appear manageable. Given the limited cash cushion, careful monitoring of cash inflows and outflows is essential. No profit and loss data were provided, so profitability and operating cash flow cannot be fully assessed.

4. Monitoring Points:

• Liquidity trends: Monitor changes in net current assets and cash balances monthly.
• Profitability: Obtain periodic management accounts to assess gross and net margins.
• Debtor and creditor aging: Watch for delays in receivables collection or rising payables.
• Director conduct and governance: No adverse records noted; monitor any changes.
• Business activity: The company operates in residential nursing care and motion picture distribution — sectors with differing risk profiles requiring attention to industry-specific risks.