Company Number: 13526509

Analysis Date: 2025-07-29 15:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Taylor Made Arts Ltd is a private, limited by guarantee entity operating in the performing arts sector. The company demonstrates improving liquidity and balance sheet strength as of the latest accounts. However, the firm is relatively young (incorporated in 2021) with limited financial history and no employees, which increases the risk. The company’s ability to service debt appears adequate currently due to positive net current assets and cash holdings, but careful monitoring is warranted given the modest scale and sector exposure.

2. Financial Strength:

• The net assets improved markedly from £610 in 2023 to £4,808 in 2024, reflecting stronger equity backing.
• Tangible fixed assets are minimal (£322 net book value), implying low capital intensity and limited collateral value for secured lending.
• Shareholders funds equal net assets, consistent with the guarantee structure and absence of share capital.
• The balance sheet shows a strong liquidity position with current assets of £5,632 against current liabilities of £1,146, producing net current assets of £4,486.
• The company reversed a prior year small working capital deficit (-£34) to a sizeable positive position, indicating improved operational management or funding.

3. Cash Flow Assessment:

• Cash on hand remains positive at £5,632, though down from £9,654 the prior year, suggesting some cash consumption or investment.
• No debtors recorded in the latest year compared to £2,250 previously; this may affect short-term cash inflows and should be explored in context of client payment patterns.
• Current liabilities have been reduced significantly from £11,938 to £1,146, reducing short-term repayment pressure.
• Absence of employees reduces payroll cash outflows but raises questions about operational scalability and revenue generation.

4. Monitoring Points:

• Continued improvement or maintenance of positive working capital and cash balances.
• Stability or growth in revenue and receivables to support cash flow given the performing arts sector’s variability.
• Directors’ management changes in 2025 could impact governance; monitor any shifts in financial policy or operational strategy.
• Sector risks: the company’s niche in performing arts could be vulnerable to economic downturns or public gathering restrictions.
• Any future debt or credit facility usage should be reviewed carefully given the company’s small asset base and limited trading history.