ARKEN MEDIA LTD

Executive Summary

Arken Media Ltd is a micro-entity IT consultancy with a growing and stable financial position, showing solid liquidity and positive net asset growth over recent years. The company’s sound balance sheet and prudent management support a positive credit assessment for modest lending. Continued monitoring of profitability and working capital will be essential to confirm ongoing creditworthiness.

ARKEN MEDIA LTD - Analysis Report

Company Number: 12929551

Analysis Date: 2025-07-29 17:31 UTC

1. Credit Opinion: APPROVE
   Arken Media Ltd demonstrates a stable and improving financial position typical of a micro-entity. The company shows consistent net asset growth from £144 in 2020 to £26,213 in 2023, indicating positive equity accumulation. Current liabilities are managed well relative to current assets, reflecting sufficient short-term liquidity to meet obligations. No overdue filings or insolvency flags are present, and the sole director has maintained continuous stewardship since incorporation. This profile suggests the company is capable of servicing modest credit facilities with low risk.

2. Financial Strength:
   The balance sheet reveals a healthy increase in net current assets, rising from £144 in 2020 to £24,985 in 2023, driven by steady growth in current assets and stable or slightly declining current liabilities. Fixed assets remain minimal, typical for an IT consultancy, implying low capital intensity and limited asset-based borrowing capacity. The net asset value and shareholder equity have increased in line with retained earnings, evidencing profitable operations or capital injections. Overall, the financial structure is sound but with limited tangible asset backing.

3. Cash Flow Assessment:
   The company’s net current assets position indicates strong short-term liquidity. With current assets of £41,598 against current liabilities of £16,613 as of 2023, Arken Media Ltd appears to have sufficient working capital to cover immediate debts. The small employee count (2 employees) suggests modest operating expenses and manageable overheads. However, absence of detailed cash flow statements limits deeper analysis. The positive trend in working capital supports confidence in ongoing operational cash generation.

4. Monitoring Points:

• Monitor revenue and profit trends in future filings to ensure continued growth and ability to service increased credit limits.
• Watch for any sudden increases in current liabilities or deterioration in working capital ratios which could signal liquidity stress.
• Track director changes or any PSC disclosures that might impact governance or control.
• Keep an eye on the company’s ability to meet filing deadlines to avoid compliance risks.