BLACK HANGAR STUDIOS LTD
Company number 07009416 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: Black Hangar Studios Ltd
Company Number: 07009416 Date of Analysis: Based on filed accounts to 31 December 2024
1. Credit Opinion: DECLINE
This company presents an unacceptable credit risk on every measurable dimension. The business is balance-sheet insolvent with net liabilities of £888,759, generates effectively no revenue (£557 for the full year 2024), and holds negligible cash (£1,647). There is no realistic capacity to service any new debt obligation. The company has sustained uninterrupted losses for at least a decade, with accumulated deficits of £8.37M in the P&L reserve fully eroding substantial share capital of £6.87M. No credible repayment source exists.
2. Financial Strength
Balance sheet position is critically weak and deteriorating.
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £405,631 | £477,019 | -15% |
| Total Liabilities | £1,276,431 | £1,162,509 | +10% |
| Net Assets | (£888,759) | (£712,234) | Worsening |
| Working Capital | (£870,800) | (£685,490) | Worsening |
The company has been technically insolvent on a balance sheet basis for the entire 10-year period reviewed. Net liabilities have grown from £118,974 (2015) to £888,759 (2024) — a 7.5x deterioration. Shareholders' funds are negative £888,759, meaning creditors are funding the ongoing operations with no equity cushion whatsoever.
Notably, no fixed assets appear on the balance sheet despite the company marketing itself as a film production studio with "UK's Largest Green Screen." This raises questions about asset ownership — the company may operate from leased premises with leased equipment, leaving no tangible collateral to secure against.
The "other creditors" balance of £1,193,909 constitutes the vast majority of current liabilities. Without further disclosure, the composition and seniority of these obligations are unknown, but the magnitude relative to total assets (£405,631) indicates the company owes roughly £3 for every £1 of assets held.
Share capital of £6,870,106 indicates historical equity investment, but this has been entirely consumed by accumulated losses. No fresh capital injection is evident in recent years.
3. Cash Flow Assessment
Liquidity is effectively non-existent. The business has no capacity to generate cash from operations.
| Metric | 2024 | 2023 |
|---|---|---|
| Turnover | £557 | £38,013 |
| Operating Loss | (£171,369) | (£154,119) |
| Net Loss | (£176,549) | (£159,389) |
| Cash at Bank | £1,647 | £1,040 |
Revenue has collapsed by 98.5% year-on-year — from £38,013 (already sub-commercial) to £557. This is not a functioning trading business; £557 in annual turnover for a studio operation suggests the company is either dormant in practice or completing negligible incidental work.
The company is burning approximately £176,549 annually with no revenue to offset. With only £1,647 in cash, the business would be unable to meet even one month of operating costs from its own resources. It is entirely dependent on creditor forbearance, director loans, or related-party funding to continue.
Debtors of £403,984 (of which £362,705 are "other debtors") may represent the only potential liquidity source, but the nature and collectability of these balances is uncertain. If even a portion is impaired, the working capital deficit worsens further.
Working capital deficit of £870,800 means current liabilities exceed current assets by a factor of 3.1x. There is no short-term liquidity to speak of.
4. Monitoring Points
If any facility were ever considered (which is not recommended), the following would require ongoing surveillance:
- Revenue recovery: Any indication of commercial activity resuming — the company needs a fundamental turnaround in business generation. Monitor turnover against any projections provided.
- Creditor position: The £1.19M in "other creditors" is the single largest risk. Clarification of composition, terms, and any creditor pressure or legal action is essential.
- Director/related-party funding: The business is clearly sustained by external injections. Any withdrawal of director or related-party support would trigger immediate insolvency.
- Debtors collection: The £362,705 in other debtors — if realisable, this could partially address liabilities. Monitor collection progress.
- Filing compliance: Accounts for YE December 2024 were not approved until 15 December 2025 — nearly 12 months after year-end. This delay is a red flag for financial stewardship and may indicate difficulty in preparing accounts on a going concern basis.
- Going concern assumption: The accounts make no explicit going concern statement. Given net liabilities, negligible cash, and no revenue, the auditors (if any) or directors should be addressing going concern explicitly. The absence of this disclosure is concerning.
- Employee count: Zero average employees in both 2024 and 2023. This is not an operating business in any conventional sense. Any claim of operational capacity should be scrutinised.
- Orwo Limited: The corporate PSC owning 25-50% of shares — the financial health and relationship with this entity should be understood, as it may be the ultimate source of ongoing funding.