Company Number: 13121076

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: APPROVE
   MEOKO LIMITED is a micro-entity with a stable and positive net asset position over the last four years, showing modest but consistent growth in net current assets and shareholders’ funds. The company has no employees, indicating low operational overhead. The director, who is also the sole significant controller, shows stability in management. The company’s financial profile suggests a low-risk credit exposure with sufficient working capital to meet short-term obligations. While trading in the sound recording and music publishing sector can be volatile, MEOKO’s balance sheet strength and low liabilities support credit approval.

2. Financial Strength:
   The balance sheet reflects a solid micro-entity with net assets increasing from £3,307 in 2021 to £3,635 in 2024. Current assets slightly increased year-on-year to £5,848, while current liabilities decreased marginally, improving net current assets to £3,635. There are no fixed assets recorded, which is typical for a small service-based business in this industry. The company maintains positive shareholders’ funds, indicating retained earnings or capital injections sufficient to cover liabilities. The stable equity base and absence of debt suggest a conservative financial structure with limited leverage risk.

3. Cash Flow Assessment:
   The company’s working capital position is positive and improving, with net current assets at £3,635 as of January 2024. This indicates available liquidity to cover short-term liabilities of £2,213 comfortably. The absence of employees reduces payroll cash outflows, further supporting liquidity. While detailed cash flow statements are not available, the steady current asset levels imply consistent cash or receivables balances adequate to meet operational needs. However, the relatively small scale of operations means cash flow could be sensitive to any revenue disruptions.

4. Monitoring Points:

• Monitor revenue and profitability trends as these are not disclosed but critical for ongoing repayment capacity.
• Review any changes in current liabilities or sudden increases in debt levels that could strain liquidity.
• Watch for any director changes or new appointments that might affect governance or operational control.
• Track sector developments in sound recording and music publishing for external risks impacting cash flow.
• Ensure timely filing of future accounts and confirmation statements to maintain regulatory compliance and transparency.