TEIDE RECORDS PRODUCTIONS LTD

Executive Summary

TEIDE RECORDS PRODUCTIONS LTD is a nascent micro-entity exhibiting early-stage financial distress symptoms, such as negative net assets and working capital deficits. While typical for a start-up, these vital signs highlight a fragile financial condition that requires capital support and careful cash flow management. Taking targeted actions to strengthen funding, control costs, and accelerate revenues will be critical to improving the company's financial health and sustainability.

TEIDE RECORDS PRODUCTIONS LTD - Analysis Report

Company Number: 15195836

Analysis Date: 2025-07-29 13:03 UTC

Financial Health Assessment Report for TEIDE RECORDS PRODUCTIONS LTD

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1. Financial Health Score: D

Explanation:
The company is in a very early stage, having been incorporated in October 2023 and filing its first micro-entity accounts for the year ending October 2024. Its financial statements show negative net assets, indicating an imbalance between liabilities and assets. This is typical for a start-up but raises concerns over solvency and financial stability at this stage. The score reflects early warning signs ("symptoms of distress") but acknowledges the company's nascent operational status.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	0	No investment in long-term assets; typical for a new company possibly focusing on services.
Current Assets	1	Extremely low liquid assets; indicates minimal cash or receivables available.
Current Liabilities	4	Small debts due within a year; higher than current assets, indicating short-term liquidity risk.
Net Current Assets (Working Capital)	-3	Negative working capital; signals potential cash flow issues to meet short-term obligations.
Total Assets Less Current Liabilities	-3	Reflects overall negative net asset position; company owes more than it owns currently.
Net Assets (Shareholders' Funds)	-3	Negative equity; shareholders' funds are in deficit, indicating accumulated losses or initial funding gaps.
Employees	0	No staff employed, consistent with early-stage or pre-operational phase.

Additional Notes:

• The company qualifies as a Micro-entity, subject to minimal filing requirements.
• No audit required, which is standard for this size.
• Director and secretary appointed; governance in place.
• Industry sectors: specialised design, sound recording, music publishing, post-production, and book publishing — creative and media-oriented fields.

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3. Diagnosis:

The company presents classic early-stage "symptoms" of a newly formed business:

• Negative net assets: The balance sheet shows a deficit of £3, indicating liabilities exceed assets by this amount. This is a sign of financial distress if it persists but may reflect initial set-up costs or unpaid capital.
• Negative working capital: The company has more current liabilities than current assets (£4 liabilities vs £1 asset), which means it could struggle to meet short-term obligations without fresh funding or revenue inflows.
• No fixed assets: The absence of tangible or intangible fixed assets is typical for a start-up still in the formative or pre-operational stage.
• No employees: The company currently operates without staff, possibly relying on the director and external contractors or not yet fully operational.
• Industry nature: The creative sector often experiences irregular cash flows and may require upfront investment or deferred revenue recognition, which can explain initial negative equity.

The financial "vital signs" suggest TEIDE RECORDS PRODUCTIONS LTD is at a fragile stage, dependent on capital injections or early revenues to stabilize its financial position. Without intervention, it risks cash flow strain or insolvency symptoms manifesting.

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4. Recommendations:

To improve financial wellness and move from distress symptoms toward health, the company should consider:

• Capital Injection: Ensure adequate funding either from shareholders or external investors to cover liabilities and provide working capital. Early-stage businesses often require seed funding to bridge initial losses.
• Cash Flow Management: Monitor and manage cash flows carefully. Consider short-term financing options or negotiate payment terms with creditors to avoid liquidity crunches.
• Asset Investment: As operations develop, consider acquiring necessary fixed assets or intangible assets (like intellectual property rights) to strengthen the balance sheet and support growth.
• Revenue Generation: Accelerate customer acquisition and revenue streams to improve current asset levels and reduce reliance on external funding.
• Expense Control: Keep operational costs low until steady income is established. Avoid unnecessary expenditures that exacerbate the working capital deficit.
• Governance and Reporting: Maintain compliance with filing deadlines and consider preparing management accounts regularly to track financial health internally.
• Professional Advice: Engage with financial advisors or accountants to develop a robust financial plan and explore funding opportunities.

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