OPEN THE BOX PRODUCTIONS LTD

Executive Summary

Open The Box Productions Ltd is a newly formed micro-entity showing initial profitability and positive net assets but with limited financial depth and notable long-term creditors. Credit approval is recommended on a conditional basis with close monitoring of cash flow and trading performance to ensure ongoing debt service capability. The company’s small scale and early development stage warrant prudent risk management and oversight.

OPEN THE BOX PRODUCTIONS LTD - Analysis Report

Company Number: 15358089

Analysis Date: 2025-07-20 15:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Open The Box Productions Ltd is a very recently incorporated micro-entity operating in support activities to performing arts. The company reported a modest profit of £4,544 on a turnover of £38,502 for its first short accounting period. While it has positive net assets of £4,644 and net current assets of £941, the level of current liabilities (£1,066) and especially long-term creditors (£8,607) relative to its limited turnover indicates some financial leverage. The directors’ experience is not fully detailed, but the majority shareholding and control rest with one individual, Mr Joel Robert Turland, which may concentrate decision-making risk. Given the early stage of trading and limited financial history, credit approval should be conditional on monitoring future trading performance, cash flow, and timely filing of accounts.

2. Financial Strength:
   The balance sheet shows fixed assets of £12,210 and total net assets of £4,644, indicating some initial investment in assets. However, the company carries creditors due after more than one year amounting to £8,607, which is significant compared to turnover. Current assets (£2,007) slightly exceed current liabilities (£1,066), providing a small working capital buffer. Overall, the company’s financial strength is limited but not currently impaired. The micro-entity status and lack of employees suggest a lean structure. The low equity base and reliance on external financing increase vulnerability to cash flow shocks.

3. Cash Flow Assessment:
   Net current assets of £941 indicate a slight positive working capital position, but the company’s cash resources are very modest given the turnover scale. The absence of employees reduces operating cash outflows, but the company will need to generate consistent inflows to service its creditors, especially the sizeable long-term liabilities. The reported profit margin is positive, but the cost of materials is high relative to turnover, which may affect future cash conversion. Close attention should be paid to cash flow forecasts and creditor payment terms.

4. Monitoring Points:

• Quarterly review of turnover growth and profitability trends to ensure revenue trajectory supports debt servicing.
• Monitoring of cash flow statements and liquidity ratios to detect any cash shortages early.
• Timely filing of annual accounts and confirmation statements to avoid compliance risk.
• Watch for changes in director appointments or ownership that may affect governance.
• Assessment of creditor aging and any restructuring of long-term debt facilities.