Company Number: OC439191

Analysis Date: 2025-07-29 15:40 UTC

1. Credit Opinion: DECLINE
   That’s Creative LLP demonstrates a weak financial position with net liabilities of £1,261 as of 31 March 2024, despite a slight improvement from prior years. The company has no cash reserves and zero current liabilities reported as of the latest year-end, which appears to be due to creditor balances being cleared or reclassified, but this does not indicate robust liquidity. The LLP has no employees, suggesting a very small operational footprint and limited capacity to generate sustainable revenues. The absence of a profit and loss account filing further reduces transparency. Given the negative equity, lack of cash, and minimal business scale, the company currently lacks the financial strength and cash flow stability to reliably service any credit facilities. Approval for new or extended credit is not recommended without significant improvement in financial performance and evidence of positive cash flow generation.

2. Financial Strength:
   The balance sheet shows persistent net liabilities of £1,261 over recent years, moving to a net asset position of £0 in 2024 only due to members’ capital injections. Current assets are limited to cash balances which fell to zero by March 2024, with no fixed assets disclosed. The company has no outstanding current liabilities as of the latest filing, but this reflects very limited trading activity rather than a strong position. Members’ funds remain minimal, indicating weak capitalization. Overall, the financial structure is fragile with no buffer to absorb trading setbacks.

3. Cash Flow Assessment:
   The cash position dropped from £867 in 2023 to nil in 2024, signaling either operating cash burn or repayment of creditors. There is no indication of positive cash inflows from operations given the absence of employees and lack of trading scale. Working capital is neutral with no current liabilities, but this is likely due to minimal business activities rather than effective working capital management. The company’s liquidity profile is inadequate to support debt servicing or meet unexpected expenses without immediate external funding.

4. Monitoring Points:

• Monitor future cash flow trends and bank balances closely to detect any liquidity improvements or deteriorations.
• Review forthcoming profit and loss accounts when filed for evidence of operating profitability or revenue growth.
• Track any changes in members’ capital contributions to assess ongoing financial support.
• Observe any increase in business scale such as hiring employees or acquiring assets, which may signal operational growth.
• Confirm timely filing of statutory accounts and returns to ensure compliance and transparency.