LITTLE NIPPER PRODUCTIONS LTD

Executive Summary

LITTLE NIPPER PRODUCTIONS LTD exhibits significant financial weakness characterized by negative net assets and substantial long-term liabilities exceeding current assets. Its limited scale, negative equity, and lack of clear cash flow strength present high credit risk. Without evidence of capital restructuring or improved cash generation, credit facilities are not recommended at this time.

LITTLE NIPPER PRODUCTIONS LTD - Analysis Report

Company Number: 13114784

Analysis Date: 2025-07-20 12:24 UTC

1. Credit Opinion: DECLINE
   The company shows a negative net asset position of approximately £48,903 as at 31 January 2024, largely due to substantial long-term liabilities (£53,789) exceeding current asset levels (£4,886). This indicates a weak balance sheet and potential insolvency risk. Given the absence of any reported current liabilities, the negative net assets stem from creditors due after more than one year, suggesting the company is carrying significant long-term debt or obligations it is unlikely to cover with existing assets. The micro-entity status and early stage of the company (incorporated 2021) limit financial history and visibility, increasing uncertainty. The single director's limited financial disclosures and small scale of operations also offer limited assurance of robust financial stewardship. Overall, the company’s financial position does not support new credit facilities without substantial guarantees or restructuring.

2. Financial Strength:
   The company’s balance sheet reveals minimal current assets (£4,886) and no current liabilities, but a large creditor balance due after one year (£53,789), resulting in net liabilities of £48,903. Shareholders’ funds are negative, confirming an equity deficit. This weak capital structure and negative net assets reflect poor financial strength and potentially ongoing losses or accumulated deficits. The micro size and single employee indicate limited operational scale, and no fixed assets are reported. The company may be reliant on external funding or shareholder loans, which could be fragile.

3. Cash Flow Assessment:
   With current assets barely covering short-term needs and no current liabilities, liquidity appears constrained but not critically impaired in the immediate term. However, the significant long-term liabilities create future cash outflow obligations that the company’s current asset base and operational scale may not support. Working capital is positive but minimal, and the lack of detailed cash flow statements limits confidence in operational cash generation. The company's ability to meet upcoming debt service and operational expenses from cash flows is uncertain and likely weak.

4. Monitoring Points:

• Track changes in net assets and creditor balances to assess if liabilities are being reduced or increasing.
• Monitor cash flow statements and operational profitability when available to gauge capacity to service debts.
• Review director reports and subsequent accounts filings for any restructuring plans or capital injections.
• Watch for any overdue filings or changes in company status indicating financial distress.
• Assess industry conditions in motion picture production for potential impacts on revenue streams.