Company Number: 13739535

Analysis Date: 2025-07-29 13:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Never Let Me Go Ltd is a recently incorporated private limited company (November 2021) operating in motion picture production. The company’s most recent accounts show a marginally negative net current asset position (£-1,482) and negative equity (£-1,482), primarily due to outstanding amounts owed to its group undertaking (£309,193) classified as current liabilities. While it holds stock assets valued at £309,193, cash on hand is minimal (£100). The company is reliant on its parent/group company for funding and has not generated retained earnings yet. Credit approval may be considered if the borrowing is small, short-term, or fully guaranteed by the parent company (Silva Screen Records Ltd, which holds 75-100% control). Without parental support, the current financial position poses a risk of liquidity pressure.

2. Financial Strength Analysis:

• The balance sheet shows no fixed assets and a build-up of stock worth £309k, which appears to be owed to or funded by the group, given the corresponding liability.
• Negative shareholders’ funds indicate losses or capital injections not yet reflected as profits.
• No bank borrowings or external debt disclosed, but significant intra-group creditor balance exists.
• The lack of cash reserves and net current liabilities suggest weak standalone financial strength.
• No employees reported, which is common for a start-up in production, but limits operational capacity and revenue generation.

3. Cash Flow Assessment:

• Cash position is minimal (£100), indicating limited liquidity to meet immediate obligations.
• Working capital is negative, implying current liabilities slightly exceed current assets.
• Dependence on group funding reduces standalone cash flow risk but introduces intercompany credit risk.
• No evidence of external financing or cash inflows from operations yet, consistent with a start-up phase.
• The absence of audit and limited disclosures restrict visibility on cash flow trends.

4. Monitoring Points:

• Track improvement in net current assets and cash balances in future filings to assess liquidity progress.
• Monitor intra-group balances and any formalization of funding arrangements or guarantees.
• Review operational progress and revenue generation as the company develops its production activities.
• Watch for any director changes or new financing that might affect credit risk profile.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance issues.