TEN STONES ENTERTAINMENT LIMITED

Executive Summary

Ten Stones Entertainment Limited is a recently incorporated company with a weak financial position highlighted by significant working capital deficits and negative equity. The business is dependent on director loans to finance operations, indicating high liquidity risk and limited capacity to meet short-term obligations. Without evidence of improved cash flow or capital restructuring, credit facilities are not recommended at this time.

TEN STONES ENTERTAINMENT LIMITED - Analysis Report

Company Number: 14225421

Analysis Date: 2025-07-20 12:50 UTC

1. Credit Opinion: DECLINE
   Ten Stones Entertainment Limited exhibits a weak financial position with substantial net current liabilities (£117,279) and negative shareholders' funds of similar magnitude. The company’s liabilities far exceed its current assets, raising serious concerns about its ability to meet short-term obligations. The negative equity and dependence on director loans (£159,951) suggest operational funding challenges and insufficient capital buffer. Given the company’s recent incorporation in 2022 and absence of employees or audited financials, the credit risk is high without further mitigating information or guarantees.

2. Financial Strength:
   The balance sheet shows a fragile financial structure. Current assets (£45,272) primarily consist of cash (£36,203) and debtors (£9,069), while current liabilities are £162,551, resulting in a working capital deficit. The company is reliant on director funding, which can be unstable from a creditor perspective. The negative net assets and shareholders’ deficit (£117,279) reflect accumulated losses or funding shortfalls. There are no fixed assets or long-term investments to offset this position.

3. Cash Flow Assessment:
   Cash on hand is limited at £36,203 against significant short-term creditors of £162,551, indicating liquidity stress. The negative net current assets highlight insufficient working capital to cover immediate liabilities, raising risk of payment delays or default. There is no indication of operating cash flow generation or profitability to improve liquidity. Reliance on director advances suggests external borrowing or capital injections are currently the primary source of cash.

4. Monitoring Points:

• Timely filing of next financial accounts and confirmation statements to track financial progress.
• Changes in current liabilities and director loan balances to gauge funding stability.
• Cash flow trends and ability to generate operating income or reduce reliance on director advances.
• Any moves to restructure liabilities or secure external financing to improve liquidity and solvency.
• Management’s plans for profitability and business growth in the support activities to performing arts sector.