Company Number: 13992610

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: DECLINE
   Tickle Entertainment Limited shows a weak financial position at its first year-end with net liabilities of £2,301 and negative working capital of £2,302. The company’s current liabilities (£229,925) slightly exceed current assets (£227,623), indicating tight liquidity. The significant amount owed to group undertakings (£203,600) suggests reliance on related party financing rather than independent cash generation. Given the company is newly incorporated (2022) and has not yet demonstrated profitability or positive net assets, the risk of default is elevated. Without evidence of improving cash flow or a clear plan to reduce liabilities, extending credit would be highly risky.

2. Financial Strength:
   The balance sheet reflects a fragile capital structure with shareholders’ deficit of £2,301. Fixed assets are negligible (£1), and the company relies heavily on receivables (£195,822) which may not be readily convertible to cash. The high current liabilities mainly consist of amounts owed to group undertakings and other creditors, indicating a leveraged and dependent position. Absence of retained earnings or positive reserves shows no cushion against operational or market shocks. Overall, the financial strength is weak with negative net assets.

3. Cash Flow Assessment:
   Cash on hand is low at £31,801 compared to current liabilities of £229,925, giving a current ratio just under 1. The company appears to have limited liquid resources and negative net current assets, raising concerns about its ability to meet short-term obligations without additional funding. High debtor balances could potentially improve liquidity if collected promptly, but no information on ageing or collectability is available. The dependence on amounts owed to group undertakings also suggests cash flow may be constrained without intra-group support.

4. Monitoring Points:

• Timely collection of debtors to improve liquidity and working capital.
• Reduction of amounts owed to group undertakings and other creditors to alleviate short-term liabilities.
• Filing of overdue accounts to maintain regulatory compliance and creditor confidence.
• Profitability trends in subsequent periods to assess ability to generate internal funds.
• Any new capital injections or external financing arrangements to support operations.