THE ISLAND FILMCO LIMITED

Executive Summary

The Island Filmco Limited is an early-stage private company in the motion picture production sector showing a marginally negative working capital and shareholders’ funds position. While compliance with filing requirements is up-to-date and current assets are substantial, the slight excess of current liabilities over assets and absence of employees highlight liquidity and operational risks. Further analysis of asset quality, liabilities, and operational plans is recommended to evaluate financial sustainability.

THE ISLAND FILMCO LIMITED - Analysis Report

Company Number: 14518609

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net current asset position (£-2,275) despite substantial current assets (£2.63m), indicating liabilities slightly exceed liquid assets. The negative shareholders' funds at this early stage of operation suggest initial funding may be inadequate or that the company is operating at a loss.

2. Key Concerns:

• Solvency Risk: Negative net current assets and shareholders' funds point to potential difficulty meeting short-term obligations without additional capital or cash inflows.
• Liquidity Concerns: Current liabilities marginally exceed current assets, posing a risk to cash flow stability, especially given no employees and presumably limited operational income.
• Operational Stability: The company is newly incorporated (Dec 2022) with no reported employees, which raises questions about the scale and sustainability of ongoing operations in motion picture production.

3. Positive Indicators:

• Timely Compliance: No overdue filings for accounts or confirmation statements demonstrate good regulatory compliance and governance.
• Substantial Current Assets: Holding over £2.6m in current assets at this early stage may indicate initial capital injection or investments, providing a buffer if managed prudently.
• Experienced Directors: Directors include individuals with notable backgrounds (e.g., Pawel Pawlikowski), potentially enhancing business credibility and access to industry networks.

4. Due Diligence Notes:

• Investigate the composition of current assets to assess liquidity quality (e.g., cash vs. receivables or prepayments).
• Clarify the nature and maturity of current liabilities to understand immediate cash obligations and potential refinancing needs.
• Review business model and revenue generation plans given zero employees and negative equity position.
• Assess access to additional funding or financial support from shareholders or third parties.
• Confirm directors’ involvement level and prior track record in film production ventures.