WINDOW ZEBRA PRODUCTIONS LTD

Executive Summary

WINDOW ZEBRA PRODUCTIONS LTD is a newly established micro-entity in the motion picture production sector showing early signs of financial strain with negative net assets but healthy short-term liquidity. The company’s financial health is fragile (Grade D), reflecting typical startup challenges. Strengthening equity, managing long-term debt, and growing profitability are key steps to improve financial resilience and ensure sustainable growth.

WINDOW ZEBRA PRODUCTIONS LTD - Analysis Report

Company Number: 14718932

Analysis Date: 2025-07-29 20:09 UTC

Financial Health Assessment of WINDOW ZEBRA PRODUCTIONS LTD

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1. Financial Health Score: D

Explanation:
The company shows early-stage financial strain with net liabilities and negative shareholders’ funds, which indicates it is currently "unwell" but not in immediate critical distress. The micro-entity status and recent incorporation suggest it is still in the startup phase, but the negative net assets are a symptom requiring close monitoring and corrective action.

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2. Key Vital Signs

Vital Sign	Value (£)	Interpretation
Current Assets	15,469	Limited cash and receivables; small operational buffer
Current Liabilities	27,600 (long-term)	Significant debts due beyond one year
Net Current Assets	15,243	Positive working capital; healthy short-term liquidity
Net Assets (Shareholders Funds)	-12,832	Negative equity; indicates accumulated losses or funding gap
Number of Employees	3	Small team; typical for micro-entity size

Interpretation:

• The company has a healthy cash flow symptom evidenced by positive net current assets, meaning it can cover short-term debts with current assets.
• However, there is a symptom of distress in the form of significant long-term creditors leading to net liabilities (negative net assets). This suggests the company is reliant on external funding or debt beyond its asset base.
• Negative shareholders’ funds indicate that invested capital plus retained earnings have not yet covered liabilities, a common challenge for a newly formed company but a sign that the financial "immune system" is weak.

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3. Diagnosis

WINDOW ZEBRA PRODUCTIONS LTD is in the early startup phase with typical financial characteristics of a new business: modest current assets, some liabilities, and negative equity. The positive working capital (net current assets) is a reassuring sign that the company can meet its immediate obligations, which is a critical "heartbeat" of financial health.

However, the negative net assets reveal the company has more liabilities than assets on a broader scale, a "symptom of distress" that could worsen if not addressed. This may be due to initial setup costs, investment in intangible assets, or start-up losses. The company’s micro-entity filing status and small employee count align with this early developmental stage.

The directors appear to be actively managing the business, with no overdue filings or compliance issues—another positive sign for maintaining corporate "wellness."

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4. Recommendations

To improve the financial wellness of WINDOW ZEBRA PRODUCTIONS LTD and move from a fragile to a healthier state, consider the following actions:

1. Strengthen Capital Base:

   • Seek additional equity investment or shareholder loans to improve net assets and reduce reliance on long-term creditors.
   • This acts like a "nutritional boost" to the company's financial body.

2. Manage Long-Term Liabilities:

   • Renegotiate terms with creditors to extend payment periods or reduce interest rates, improving financial breathing room.
   • Avoid "chronic debt stress" by carefully managing repayment schedules.

3. Increase Revenue and Profitability:

   • Focus on growing sales in the motion picture production activities sector to generate positive earnings and build retained profits.
   • This is akin to building muscle strength for the company's financial body.

4. Maintain Rigorous Cash Flow Monitoring:

   • Keep close watch on cash inflows and outflows to ensure liquidity remains healthy and avoid "cash flow shock."
   • Use cash flow forecasts to anticipate dips and plan accordingly.

5. Cost Control:

   • Review operating expenses regularly to prevent unnecessary financial strain.
   • Maintaining lean operations will help conserve cash reserves.

6. Prepare for Future Audit Requirements:

   • Ensure accounting records are robust and consider early engagement with an auditor if the company grows beyond micro-entity limits.
   • This is like regular health check-ups to detect issues early.

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