BLVCK SHEEP MEDIA LTD

Executive Summary

BLVCK SHEEP MEDIA LTD is a start-up micro-entity with a positive equity base and solid working capital, indicating initial capability to meet financial obligations. The company’s single director and shareholder structure, combined with limited operating history, warrants cautious credit exposure with close ongoing monitoring. Overall, credit approval is recommended with conditions around careful limit setting and periodic financial review.

BLVCK SHEEP MEDIA LTD - Analysis Report

Company Number: SC779228

Analysis Date: 2025-07-20 11:03 UTC

1. Credit Opinion: APPROVE with caution. BLVCK SHEEP MEDIA LTD is a newly incorporated micro-entity operating in specialist photography, currently owned and managed solely by Mr. Humza Abdul Rahman. The company shows a modest but positive net asset position and working capital surplus, which supports its ability to meet short-term obligations. However, as a start-up with limited financial history and only one employee, the credit exposure should be limited initially, and ongoing monitoring recommended.

2. Financial Strength: The balance sheet as of 31 August 2024 shows total net assets of £11,016, which, while modest, indicates positive equity and some capital buffer. Fixed assets are low (£8,543), typical for a service-oriented business with minimal capital expenditure. Current assets exceed current liabilities by £9,557, reflecting a satisfactory working capital position. There is a loan or creditor balance of £7,084 falling due after one year, which should be clarified but does not currently impair net assets.

3. Cash Flow Assessment: Current assets of £17,033 against current liabilities of £7,476 suggest adequate short-term liquidity to cover immediate debts. The net current assets position of £9,557 indicates sufficient working capital to support day-to-day operations. However, no detailed cash flow statement is provided, so assessment relies on balance sheet liquidity. Given the small scale and early stage, cash flow volatility risk exists, and it is prudent to require updated cash flow forecasts for credit extensions.

4. Monitoring Points:

• Track timely filing of annual accounts and confirmation statements to avoid regulatory penalties.
• Monitor turnover and profitability trends as the company progresses beyond start-up phase.
• Review any changes in director or shareholder structure, given single-person control.
• Clarify nature and terms of long-term liabilities (£7,084) to assess repayment risk.
• Watch for any delays in supplier or creditor payments which could indicate cash flow strain.