Company Number: 13549000

Analysis Date: 2025-07-20 17:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Studio Jago Limited is an active private limited company engaged in motion picture production activities. While it maintains positive net assets (£74.5k as of 2024), the company exhibits weak liquidity and working capital concerns with a negative net current asset position (-£596) and very low cash reserves (£316). The decline in current assets and reduction in director’s loan account from £10.3k to £6.3k shows some repayment but overall short-term cash flow remains tight. The absence of an audit and limited turnover information constrains a full risk assessment. Approval is recommended with conditions including close monitoring of cash flow, timely repayments of director loans, and updated financials demonstrating improved liquidity.

2. Financial Strength: The balance sheet shows stable net assets around £74k–£75k primarily supported by intangible assets (goodwill at £79.5k) and tangible fixed assets (£2.3k). Shareholders’ funds remained constant at £75.1k, reflecting no new equity injections. The reduction in current assets from £2.8k (2023) to £695 (2024) and the increase in short-term liabilities relative to cash indicates stress in working capital management. The director’s loan account, a material non-current liability, has decreased but remains significant (£6.3k). The company shows sound equity backing but limited liquid assets to cover near-term liabilities.

3. Cash Flow Assessment: Cash at bank has decreased substantially over the year from £2,799 to £316, signaling tight liquidity. Trade debtors are minimal (£379), and trade creditors are low (£52), suggesting limited transactional volume. Negative net current assets (-£596) indicate the company is currently unable to cover short-term obligations from current assets, implying reliance on director loans or other external funding for day-to-day operations. The slow cash burn is concerning and requires attention to working capital optimization and cash generation from operations.

4. Monitoring Points:

• Liquidity ratios and net current assets should be closely watched to detect any worsening cash flow.
• Director’s loan account repayments and any new borrowings must be monitored for potential financial strain.
• Turnover and profitability trends when available to assess operational viability.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Any changes in control or director appointments that might impact governance or credit risk.