PLANET B PRODUCTIONS LTD

Executive Summary

Planet B Productions Ltd is a newly established small private limited company showing initial profitability and positive net assets. Its compliance with filing requirements and liquidity position suggests low immediate risk, but limited operating history and small turnover warrant close monitoring of operational scalability and accruals management. Investors should focus on understanding the company’s business model and deferred income implications to assess future stability.

PLANET B PRODUCTIONS LTD - Analysis Report

Company Number: 14654363

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: LOW
   Planet B Productions Ltd is a recently incorporated small private limited company with a positive net asset position, modest turnover, and no overdue filings. The financial statements indicate profitability and adequate working capital, which suggests a low short-term risk profile.

2. Key Concerns:

• Early Stage Operation: Incorporated in 2023, the company has limited operating history, which inherently increases uncertainty regarding future performance and sustainability.
• Modest Revenue Scale: Turnover of £41,156 is low, which may indicate limited market penetration or scale, raising questions about scalability and resilience to market fluctuations.
• Accruals and Deferred Income: Significant accruals and deferred income (£4,390) relative to turnover and liabilities may need scrutiny to understand the underlying obligations and revenue recognition policies.

3. Positive Indicators:

• Profitability: The company reported an operating profit of £3,823 and a net profit after tax of £3,097, reflecting operational efficiency at current scale.
• Positive Net Current Assets: Net current assets of £3,104 indicate the company can cover its short-term liabilities with current assets, supporting liquidity.
• No Overdue Filings: Accounts and confirmation statements are filed on time, demonstrating good regulatory compliance and governance.
• No Audit Requirement: Being a small company, it benefits from audit exemption, reducing administrative overhead.

4. Due Diligence Notes:

• Verify the nature and timing of deferred income and accruals to assess any contingent liabilities or revenue recognition issues.
• Investigate the business plan and market strategy to understand growth prospects given the current small scale of operations.
• Confirm the directors’ experience and involvement given the diverse creative and academic backgrounds, assessing operational management capabilities.
• Monitor cash flow trends beyond the first accounting period to ensure ongoing liquidity and operational funding adequacy.