TALKINGLENS PRODUCTIONS LTD

Executive Summary

Talkinglens Productions Ltd is a newly formed micro-entity with limited operating history and modest financial resources. While current net assets are positive, the company shows reliance on prepayments and carries provisions that require further explanation. Credit can be conditionally approved pending detailed cash flow forecasts and clarity on liabilities, with close monitoring recommended on liquidity and operational performance going forward.

TALKINGLENS PRODUCTIONS LTD - Analysis Report

Company Number: 14554014

Analysis Date: 2025-07-29 20:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Talkinglens Productions Ltd is a recently incorporated micro-entity operating in video production. Its financials are very limited as this is its first full year of operation ending 31 Dec 2023. The company shows a modest net asset base of £2,638 with no employees and minimal fixed assets. The balance sheet includes prepayments (£12,250) and provisions for liabilities (£3,956) which warrant further clarification. Current liabilities (£5,830) exceed current assets (£1,500) but net current assets are positive due to the prepayments. The presence of liabilities extending beyond one year (£1,330) and provisions suggests some financial obligations to monitor. Directors and shareholders are also the same individuals, which may indicate closely held control but limited external governance. Given the small scale, early stage, and limited financial history, credit approval should be conditional on obtaining more detailed cash flow projections and clarity on the nature of provisions and liabilities.

2. Financial Strength:
   The company’s balance sheet is modest and typical for a micro-entity in its first year. Fixed assets are negligible (£2), with current assets of £1,500 and significant prepayments (£12,250) indicating upfront payments for services or costs not yet expensed. Current liabilities of £5,830 are offset by these prepayments, resulting in net current assets of £7,920. Total net assets stand at £2,638 after accounting for long-term creditors and provisions. The small equity base and provisions imply limited financial buffer. The absence of employees suggests low operating cost structure but also indicates potential limitations on scalability. Overall, financial strength is weak but not unusual for a startup micro entity.

3. Cash Flow Assessment:
   Direct cash flow data is not provided, but the balance sheet structure suggests working capital is supported mainly by prepayments rather than cash or receivables. Current liabilities exceed current assets excluding prepayments, raising potential liquidity risk if prepayments are not readily convertible. The presence of provisions and long-term creditors further complicates liquidity outlook. The company should demonstrate ability to convert prepayments to operational output and generate positive operating cash flow to meet liabilities as they fall due. Close monitoring of cash inflows and timing of payments is critical given the thin current asset base.

4. Monitoring Points:

• Clarify the nature and timing of prepayments and provisions to assess liquidity and contingent liabilities.
• Monitor cash flow generation and working capital cycle closely, especially as no employees are recorded (potential reliance on contractors or external suppliers).
• Track timely filing of next accounts and confirmation statements to ensure compliance and transparency.
• Observe any changes in ownership or director appointments that could impact governance or financial control.
• Watch for growth in turnover and profitability to strengthen equity base and reduce reliance on prepayments.