Company Number: 13971472

Analysis Date: 2025-07-29 17:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Opaque Show Limited is a recently incorporated private limited company (2022) engaged in motion picture production. The company shows rapid growth in turnover from £566k to nearly £20.9M in one year and a small reported profit (£10k). Its current assets and liabilities are closely matched, with a narrow net working capital surplus of £10k. The principal shareholder is Universal Pictures Limited, a credible parent entity providing implicit support. The directors include financially qualified individuals and senior executives with relevant industry experience. However, the company’s small equity base and minimal liquidity (cash £111k) relative to turnover suggest tight cash flow management. Credit approval is recommended with conditions that include close monitoring of liquidity, receivables collection, and operational cash flow to ensure ongoing ability to meet obligations.

2. Financial Strength:
   The balance sheet is asset-light with current assets of £7.6M largely composed of debtors (£7.5M) and minimal cash (£111k). Current liabilities are almost equal in amount (£7.6M), resulting in net current assets of just £10k and minimal shareholders’ funds (£10k). The increase in debtors is significant and must be analyzed for collectability risk. There are no fixed assets reported, indicating no collateralizable assets. The company’s equity is minimal, reflecting early-stage capitalisation and retained profits of £10k. The financial structure is fragile but consistent with a startup growth profile relying on parent company backing and strong receivables management.

3. Cash Flow Assessment:
   Cash on hand is low relative to turnover and current liabilities, which exposes the company to liquidity risk. The significant increase in debtors (£7.5M) versus cash (£111k) indicates potential working capital constraints if receivables are not collected timely. The small net working capital buffer (£10k) suggests limited flexibility to absorb delays or unexpected expenses. The absence of fixed assets means limited ability to raise secured funding. Effective cash flow forecasting, tight credit control, and timely invoicing are critical to maintain liquidity. The company’s declared going concern status and auditor review confirm no immediate concerns, but ongoing monitoring is advisable.

4. Monitoring Points:

• Debtors aging and collectability: monitor for overdue balances or disputes impacting cash flow.
• Liquidity ratios, especially current ratio and quick ratio, given tight working capital.
• Profitability trends and administrative cost control to improve equity base.
• Parent company support and any related party transactions affecting financial stability.
• Compliance with filing deadlines and any changes in director composition or control structure.