Company Number: 12657104

Analysis Date: 2025-07-20 18:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Norfolk Screen CIC is an active private company limited by guarantee with a niche focus on cultural education and media production activities. They have demonstrated initial profitability with a modest operating profit in their first reporting period. However, their scale is very small with minimal assets and limited financial history, indicating early-stage development. Credit approval could be granted with conditions including ongoing monitoring of trading performance and cash flow, and possibly limits on credit exposure until further evidence of sustainable revenue growth and stronger liquidity is established.

2. Financial Strength:
   The company’s balance sheet as of 31 March 2021 is modest with total net assets of £646 and cash reserves of £798. There are no fixed assets or debt liabilities. Current liabilities are minimal (£152), relating only to taxation and social security. The net current assets position is positive but very small, reflecting a fragile financial position typical of a start-up. The absence of long-term assets or borrowings limits leverage risk but also indicates limited collateral for secured lending.

3. Cash Flow Assessment:
   Cash at bank is low but sufficient to cover immediate obligations, given the small scale of operations and low current liabilities. The company reported a small profit before tax (£798) and positive net cash flow from operating activities implied by the cash balance increase. There is no external debt, reducing pressure on cash flow. However, the scale of cash reserves relative to turnover (£4,166) is tight, and working capital is minimal. This implies vulnerability to cash flow shocks or delays in receivables.

4. Monitoring Points:

• Revenue growth and diversification beyond the initial £4,166 turnover.
• Cash flow trends, ensuring sufficient liquidity to meet liabilities as the company scales.
• Any increase in liabilities or external borrowing impacting financial risk.
• Continued engagement and development of the screen sector market to confirm demand sustainability.
• Directors’ ongoing management and strategic initiatives to build financial reserves and profitability.