PADDY HALL PRESENTATIONS LIMITED
Company number 03693790 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Commercial Credit Assessment: PADDY HALL PRESENTATIONS LIMITED
1. Credit Opinion: CONDITIONAL
Reasoning: The company demonstrates adequate asset backing and satisfactory liquidity ratios, but a concerning downward trajectory in net assets and a significant increase in current liabilities warrant caution. As a micro-entity with limited financial disclosure, visibility into profitability and revenue is absent. Credit facilities should be considered with appropriate covenants and monitoring, and likely limited to asset-secured arrangements rather than unsecured exposure.
2. Financial Strength
Balance Sheet Summary (Year Ending 31 March 2026):
| Metric | 2026 | 2025 | Movement |
|---|---|---|---|
| Fixed Assets | £27,810 | £38,401 | -£10,591 |
| Current Assets | £153,417 | £147,749 | +£5,668 |
| Current Liabilities | £72,933 | £50,113 | +£22,820 |
| Long-term Liabilities | £0 | £1,877 | -£1,877 |
| Net Assets | £108,294 | £134,160 | -£25,866 |
Analysis:
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Deteriorating Net Asset Position: Net assets declined by 19.3% year-on-year (£25,866). This is material and indicates either trading losses, significant dividend extraction, or asset write-downs. Without a P&L statement (micro-entity exemption), the root cause cannot be confirmed.
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Shareholders' Funds Erosion: The £25,866 decline in shareholders' equity reduces the buffer available to absorb future losses. At the current rate of erosion, net assets would be depleted in approximately 4 years if the trend continues.
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Fixed Asset Decline: Fixed assets fell by 27.6% (£10,591), suggesting limited reinvestment in the business. This may indicate either depreciation without replacement or disposal of assets.
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Historical Volatility: The financial history reveals significant swings—net assets ranged from £34,493 (2021) to £134,160 (2025). The 2021 nadir likely reflects pandemic impact on the amusement and recreation sector, but recovery has been inconsistent.
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Minimal Share Capital: Only £2 in issued share capital, meaning the equity cushion relies entirely on retained profits.
3. Cash Flow Assessment
Working Capital Position:
| Metric | 2026 | 2025 |
|---|---|---|
| Current Assets | £153,417 | £147,749 |
| Current Liabilities | £72,933 | £50,113 |
| Net Current Assets | £80,484 | £97,636 |
| Current Ratio | 2.10x | 2.95x |
Analysis:
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Liquidity Remains Adequate: The current ratio of 2.10x indicates the company can cover short-term obligations comfortably. However, the decline from 2.95x is notable.
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Current Liability Spike: Current liabilities increased by 45.5% (£22,820) while current assets only grew by 3.8% (£5,668). This imbalance is the primary driver of working capital deterioration. The increase likely represents trade creditor stretching, accrued expenses, or HMRC liabilities.
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Cash Position Unknown: No cash figure disclosed for 2026. In 2015 (last available), cash stood at £103,085. Current assets of £153,417 may include significant trade receivables which could be subject to collection risk.
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Long-term Debt Cleared: The elimination of the £1,877 long-term creditor is marginally positive, removing a fixed commitment from the balance sheet.
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Debt Service Capacity: Without P&L data, we cannot calculate interest coverage or assess whether the business generates sufficient cash flow to service new debt. This is a significant limitation.
4. Monitoring Points
| Metric | Current Status | Watch Threshold |
|---|---|---|
| Net Assets | £108,294 | Below £80,000 |
| Current Ratio | 2.10x | Below 1.5x |
| Current Liabilities Growth | +45.5% YoY | Above 20% annual growth |
| Fixed Assets | £27,810 | Continued decline without reinvestment |
| Filing Compliance | Up to date | Any overdue filings |
Key Monitoring Requirements:
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Liability Trajectory: The 45.5% increase in current liabilities must be investigated. Request clarification on composition—trade creditors, accruals, or tax liabilities. If trade creditors are being stretched, this may signal cash flow pressure.
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Profitability Confirmation: As a micro-entity, full accounts are not publicly available. Request management accounts or full financial statements to confirm the business is trading profitably and the net asset decline is not driven by operating losses.
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Related Party Exposure: Wickhurst Productions Limited holds 75%+ control. Investigate the financial health of this parent entity and any inter-company balances or guarantees. Related party transactions could create contingent liabilities.
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Sector Risk: SIC code 93290 (amusement and recreation activities) is discretionary consumer spending—vulnerable to economic downturns. Monitor consumer confidence and local economic conditions in Great Yarmouth.
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Employee Reduction: Headcount reduced from 4 to 3. Assess whether this reflects efficiency gains or cost-cutting under pressure.
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Dividend Policy: Clarify whether the £25,866 net asset decline reflects dividend extraction (manageable) or trading losses (concerning).
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Next Accounts: Year ending 31 March 2027 accounts will be critical to confirm whether the 2026 decline is a one-off or the start of a sustained deterioration.
Additional Risk Factors: - Single director (Neil Saunders) creates key-person risk - Micro-entity filing provides minimal financial transparency - Corporate PSC (Wickhurst Productions) may have its own financial difficulties that could impact this entity - Company changed name from Stormfern Limited shortly after incorporation—no immediate concern but noted for completeness