WHAT'S IN A NAME? PRODUCTIONS LTD

Executive Summary

WHAT'S IN A NAME? PRODUCTIONS LTD is currently experiencing financial distress, evidenced by negative net assets and working capital deterioration. Immediate focus on cash flow management and capital reinforcement is critical to stabilize the company. Without swift remedial action, the financial prognosis is poor, but with targeted interventions, recovery is possible.

WHAT'S IN A NAME? PRODUCTIONS LTD - Analysis Report

Company Number: 13029935

Analysis Date: 2025-07-20 13:09 UTC

Financial Health Assessment of WHAT'S IN A NAME? PRODUCTIONS LTD

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1. Financial Health Score: D

Explanation:
The company currently shows symptoms of financial distress, with net liabilities and negative shareholders' funds as of the latest financial year. This represents a significant deterioration from prior years when the company had net assets and positive working capital. The negative equity and worsening liquidity position indicate the company is in a fragile state, warranting urgent attention.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	3,925	5,852	Slightly reduced, stable long-term asset base.
Current Assets	1,027	21,293	Drastic decline, warning sign of cash and receivables depletion.
Current Liabilities	8,791	21,193	Decreased liabilities, but still high relative to assets.
Net Current Assets (Working Capital)	-7,764	100	Negative working capital indicates liquidity stress.
Total Assets Less Current Liabilities	-3,839	5,952	Negative net assets signal insolvency risk.
Net Assets / Shareholders' Funds	-4,679	5,112	Shift from healthy equity to negative net worth.
Average Number of Employees	1	1	Stable, micro entity with minimal staff.

Interpretation of Vital Signs:

• Healthy cash flow and liquidity are critical for operational stability. The precipitous drop in current assets alongside negative net current assets suggests the company is struggling to cover short-term debts.
• The negative net assets reflect accumulated losses or withdrawals exceeding capital invested, signaling financial distress akin to a patient with deteriorating vital signs.
• Fixed assets have slightly depreciated but this is not the primary concern; the acute issue is the liquidity and solvency position.

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3. Diagnosis

The company exhibits clear symptoms of financial stress:

• The sharp decline in current assets from £21,293 to £1,027 in one year indicates either rapid depletion of cash/resources or failure to collect receivables.
• Net current liabilities of £7,764 imply the company does not have enough short-term assets to meet immediate obligations, a sign of liquidity strain.
• Transition from positive net assets (£5,112) to negative net assets (-£4,679) signals the company is "under the weather" financially, possibly incurring losses or writing off assets.
• The company remains a micro enterprise with one employee, possibly indicating limited operational scale and financial resilience.
• No audit was required or performed, so detailed scrutiny is limited, but the micro-entity accounts under FRS 105 still reveal serious concerns.

In medical analogy, the company’s financial health resembles a patient whose vital signs have sharply deteriorated: the heart (cash flow) is weak, and the body's reserves (equity) have been depleted, placing the company at risk of insolvency if not treated promptly.

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4. Recommendations

To improve financial wellness and avoid potential insolvency, the company should consider the following interventions:

• Urgent Cash Flow Management:

  • Review outstanding receivables and accelerate collections.
  • Delay non-essential expenditures and negotiate extended payment terms with creditors.
  • Explore short-term financing or overdraft facilities to stabilize liquidity.

• Capital Injection:

  • Consider raising new equity or shareholder loans to restore positive net assets and strengthen the balance sheet.

• Cost Control and Business Model Review:

  • Assess overheads and operational costs to reduce burn rate.
  • Evaluate the viability of current projects and focus on profitable opportunities.

• Financial Monitoring:

  • Implement rigorous monthly cash flow forecasting and financial reporting.
  • Engage professional advice if necessary to navigate turnaround strategies.

• Strategic Planning:

  • Consider diversification or partnerships to boost revenue streams.
  • Analyze market conditions in the television and motion picture production sectors for growth opportunities.

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