SHOWING WORLD LIMITED

Executive Summary

Showing World Limited, a micro-entity with modest net assets, demonstrates stable albeit limited financial strength hampered by negative working capital and liquidity concerns. Conditional credit approval is recommended, pending additional cash flow clarity and assurances on meeting short-term obligations. Close monitoring of liquidity metrics and management continuity is advised to mitigate risk going forward.

SHOWING WORLD LIMITED - Analysis Report

Company Number: 13751468

Analysis Date: 2025-07-29 21:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Showing World Limited is a very small, micro-entity with limited financial data available. The company shows a modest positive net asset position and small but stable shareholder funds with no employees other than directors. However, the company’s working capital position is weak, showing net current liabilities of £38,519 as of January 2024, indicating potential liquidity strain. The absence of an audit and profit and loss information reduces transparency. Conditional approval is recommended, contingent on obtaining more detailed cash flow information and assurances regarding ongoing operational cash inflows to cover current liabilities promptly.

2. Financial Strength:
   The balance sheet indicates fixed assets of £52,000 and current assets of £42,949 against current liabilities of £81,468, yielding a net current liability position of £38,519. Despite this, shareholders’ funds increased modestly to £13,481 from £11,494 the prior year, reflecting some retained earnings or capital injection. The company has no employees, limiting wage liabilities but also possibly constraining growth. The micro-entity status limits detailed disclosures, but the modest increase in net assets suggests basic financial stability, albeit at a low scale.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating potential short-term liquidity challenges. The absence of working capital (negative net current assets) signals reliance on timely receivables collection or external financing to meet short-term obligations. Lack of detailed cash flow statements prevents a full assessment, but working capital deficiency is a concern for repayment capability. The company should demonstrate consistent inflow of funds or access to credit facilities to mitigate liquidity risk.

4. Monitoring Points:

• Monitor current ratio and working capital regularly to ensure liquidity improves or remains stable.
• Review subsequent trading results and cash flow statements when available for evidence of operational cash generation.
• Track director changes, especially given one director’s resignation in December 2024, to assess continuity and management quality.
• Verify that overdue filings do not emerge, which could signal governance or compliance risks.
• Keep watch on the company’s ability to meet short-term liabilities without resorting to additional borrowing.