Company Number: 13440166

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SOHO LIVE VENUES LIMITED is a micro-entity operating in the television programming and broadcasting sector, with 10 employees and a modest asset base. The company shows a decline in net current assets and net assets over the last financial year, from £44,425 in 2023 to £17,840 in 2024, indicating some financial stress. Current liabilities have increased significantly, exceeding current assets, resulting in a net current liability position of £7,030 as of 2024. This raises concerns over short-term liquidity and working capital management. However, the company remains active and compliant with filing requirements, with no overdue accounts or returns. Given the current financial position, credit approval should be conditional on obtaining further detailed cash flow forecasts and confirmation of ongoing contract revenues to ensure the company can meet its short-term obligations.

2. Financial Strength:
   The balance sheet shows fixed assets are stable around £25,000, but net current assets have moved from a positive £19,911 in 2023 to a negative £7,030 in 2024. The increase in current liabilities by approximately 24% to £204,020, without a corresponding increase in current assets, suggests growing short-term debt or payables. Total net assets have declined by about 60%, which is a material deterioration for a micro-entity. The absence of long-term liabilities is positive, but the erosion of reserves is a weakness. Shareholders’ funds have decreased from £44,425 to £17,840, indicating reduced equity cushion.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, resulting in negative working capital. This implies potential liquidity constraints and a risk of cash flow pressure in meeting short-term debts. The company maintains a small fixed asset base and moderate staffing levels (10 employees), which likely controls fixed overheads. However, without detailed cash flow statements, the ability to service debt or fund operations from operating cash flow is unclear. Monitoring day-to-day liquidity and debtor collection efficiency will be critical.

4. Monitoring Points:

• Trend in current liabilities and current assets to assess working capital management.
• Cash flow generation from operations to ensure liquidity adequacy.
• Profitability trends and reserves movement in future accounts.
• Stability of contract revenues and client payment patterns.
• Director’s commentary on business outlook and any planned capital injections or refinancing.