Company Number: 13143353

Analysis Date: 2025-07-29 15:14 UTC

1. Credit Opinion: APPROVE with conditions
   Crack Creative Company Limited demonstrates a stable and improving financial position with positive net assets and net current assets, indicating a capacity to meet short-term obligations. The company operates in advertising (SIC 73110), a sector that can be sensitive to economic cycles, so ongoing monitoring of cash flow is prudent. The directors appear stable and experienced, with no adverse records. However, the company’s absence of employees and reliance on director loans suggest a need for prudent assessment of operational scalability. Approval is recommended with routine credit monitoring.

2. Financial Strength
   The company’s net assets increased from £38,958 in January 2023 to £53,091 in March 2024, driven mainly by growth in trade debtors and some investment in tangible fixed assets (£5,150 computer equipment). Shareholders’ funds mirror net assets, reflecting retained profits. Current assets exceed current liabilities by £47,941, indicating positive working capital. The balance sheet is liquid with a reasonable cash balance (£31,265) though down from the previous year (£62,605). Overall, the balance sheet is healthy for a small private limited company in its early growth phase.

3. Cash Flow Assessment
   Cash at bank decreased from £62,605 to £31,265 year-on-year, but this is offset by an increase in trade debtors (£70,200 from £32,032) and accrued income (£24,537), suggesting sales on credit. Current liabilities remain stable (£53,524). Net current assets improved, indicating manageable short-term liquidity. The company has no employees, so cash outflows related to payroll are minimal, but director loans (£3,849) and taxes/social security (£34,331) are notable liabilities. The company should ensure timely collection of receivables to maintain liquidity.

4. Monitoring Points

• Debtor collection days and aging: The rise in trade debtors requires close monitoring to avoid cash flow strain.
• Cash balance trends: Continued monitoring of cash levels to ensure sufficient liquidity.
• Tax and social security liabilities: These have increased significantly; timely payment is critical to avoid penalties.
• Operational scale and employee additions: Lack of employees could limit capacity; any plans for growth should be evaluated carefully.
• Sector exposure: Advertising revenues can fluctuate with economic cycles, so market conditions should be observed.