Company Number: 12443941

Analysis Date: 2025-07-20 17:25 UTC

1. Credit Opinion: APPROVE MOTION SQUARE LTD demonstrates a strengthening financial position with positive net assets and growing working capital. The company is active, compliant with filing deadlines, and controlled by a single director with clear ownership and control. While it is small (micro-entity category) and relatively new, the substantial increase in net current assets and net assets over recent years supports a good ability to meet short-term liabilities and service credit obligations. No adverse director conduct or financial distress signals are present.

2. Financial Strength: The balance sheet shows steady improvement from a net asset base of £248 in 2020 to £40,196 in 2024. Fixed assets are minimal but consistent with the company’s size and industry (artistic creation and video production). Current assets increased markedly from £18,775 in 2020 to £61,356 in 2024, while current liabilities also rose but at a slower rate, resulting in net current assets of £39,559 in 2024 (up from a negative position in 2020). Shareholders’ funds reflect accumulated reserves, indicating retained earnings and stable equity.

3. Cash Flow Assessment: The company’s liquidity position is solid, with net current assets well above current liabilities, suggesting good short-term working capital management. The increase in current assets, primarily cash and receivables, provides a healthy buffer against obligations due within a year. The micro-entity status means limited disclosure of cash flow statements, but the trend in balance sheet data points to improving cash flow capacity.

4. Monitoring Points:

• Continued growth in net current assets and net assets to confirm financial resilience.
• Monitor level and aging of current liabilities to avoid liquidity strain.
• Watch for any changes in director or ownership structure that could affect management stability.
• Industry performance and external factors impacting the artistic and video production sectors.
• Timely submission of future accounts to maintain compliance and transparency.