HTDMEDIA360 LTD

Executive Summary

HTDMEDIA360 LTD demonstrates weak financial health with deteriorating net assets and negative working capital, indicating liquidity stress and impaired ability to service debts. The company relies on director loans and has no trade debtors in the latest year, raising concerns over cash flow sufficiency. Given these factors, credit approval is declined at present, but continued monitoring of financial improvements and funding sources is recommended.

HTDMEDIA360 LTD - Analysis Report

Company Number: 13223003

Analysis Date: 2025-07-20 12:31 UTC

1. Credit Opinion: DECLINE
   HTDMEDIA360 LTD (formerly BSSN INTERNATIONAL LTD) presents weak creditworthiness primarily due to persistent negative net assets and net current liabilities. The company’s financial position has deteriorated from a net asset deficit of £7,937 in 2023 to £12,404 in 2024, with net current liabilities worsening from a positive £25,666 net current assets in 2023 to negative £3,044 in 2024. This indicates liquidity strain and inability to cover short-term obligations from current assets. The company is structured as a private company limited by guarantee with no share capital, limiting capital raising options. There is no indication of profitability or positive cash flows, and directors’ loans are increasing, which may indicate reliance on related-party funding rather than operational cash generation. Without significant improvement in financial metrics or external support, extending credit facilities would be high risk.

2. Financial Strength:
   The balance sheet reveals weak financial strength. Total current assets stand at only £2,202 as of 2024, all of which is cash, with no trade debtors reported this year compared to £25,200 in 2023. Current liabilities are £9,360, resulting in negative working capital. Moreover, the company has creditors due after one year of £9,360, adding to long-term obligations. The negative net assets (shareholders’ funds) of £12,404 reflect accumulated losses and an erosion of capital base. The company is a micro entity with minimal fixed assets and limited operational scale (2 employees). The ongoing losses and increasing liabilities suggest financial distress.

3. Cash Flow Assessment:
   Cash on hand is minimal (£2,202), and the company shows no evidence of receivables or other current assets that can be converted to cash quickly. The absence of trade debtors in 2024 implies reduced sales or collection issues. Current liabilities exceed current assets, indicating potential liquidity problems to meet short-term debts. The increase in director loans (creditors within one year increased from £215 to £5,246) suggests dependence on director financing, which is not a sustainable liquidity source for credit risk purposes. Overall, cash flows appear insufficient to support ongoing operations or debt servicing without additional external funding.

4. Monitoring Points:

• Monitor next annual accounts for any reversal in negative net assets and improvement in working capital.
• Track director loan balances and any new related-party funding arrangements.
• Watch for timely filing of accounts and confirmation statements to assess management’s compliance and governance.
• Follow any changes in business activity, particularly revenue generation and receivables trends, to gauge operational recovery.
• Review any new credit facilities or external funding that may shore up liquidity.