Company Number: 15239438

Analysis Date: 2025-07-20 16:56 UTC

1. Credit Opinion: APPROVE (with caution) Paradox Av Solutions Limited is a newly incorporated entity (Oct 2023) operating in the performing arts sector. Its first set of filed accounts (year ending Oct 2024) shows a modest but positive net asset position and working capital surplus. The company demonstrates initial financial stability with no overdue filings and a simple capital structure. However, given its very recent establishment, limited trading history, and small scale, credit exposure should be moderate and closely monitored. Approval for credit facilities can be considered, especially short-term or revolving credit, contingent on periodic review of trading performance and cash flow.

2. Financial Strength: The balance sheet at 31 October 2024 shows:

• Current assets of £4,427 consisting entirely of cash.
• Current liabilities of £1,434, representing creditors and tax/social security obligations.
• Net current assets (working capital) of £2,993.
• Net assets equal to £2,993 supported by £100 share capital and £2,893 retained earnings. No fixed assets are reported, indicating limited capital investment so far. The positive net asset and working capital figures suggest solvent operations with a clean and simple balance sheet. The company meets the Small Company reporting exemptions, consistent with its size.

3. Cash Flow Assessment: The company holds cash reserves of £4,427 against short-term liabilities of £1,434, providing a current ratio of approximately 3.1x, which indicates good immediate liquidity. The working capital surplus supports the ability to meet near-term obligations. However, the absence of detailed profit and loss information (not filed) prevents a full cash flow analysis. The company’s cash base is small but adequate for current needs given its size and business activity. Monitoring ongoing cash inflows from operations will be important as the business grows.

4. Monitoring Points:

• Revenue and profit trends in future accounting periods to confirm sustainable trading.
• Cash flow management, especially as the business scales and incurs more liabilities.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Directors’ ongoing management and operational experience given the performing arts sector and the directors’ backgrounds.
• Debtor and creditor days to assess working capital cycle efficiency.
• Any capital injections or borrowings that may affect leverage and repayment capacity.