SHARK THEORY MEDIA LTD

Executive Summary

Shark Theory Media Ltd is a start-up micro company with a fragile financial position reflected by minimal net assets and a working capital deficit. While governance and compliance are currently satisfactory, the company’s ability to service debt depends on future cash flow improvements and capital support. Credit approval is recommended on a conditional basis with close monitoring of liquidity and operational progress.

SHARK THEORY MEDIA LTD - Analysis Report

Company Number: 15398481

Analysis Date: 2025-07-29 14:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Shark Theory Media Ltd is a newly incorporated micro-entity (established January 2024) with only one financial year filed. The company currently shows minimal net assets (£25) and a working capital deficiency (net current liabilities of £1,496), indicating limited financial strength. However, the absence of overdue filings, no audit requirements, and a clear shareholder structure with a majority controlling director are positive governance signals. Given the micro scale and early stage, credit approval should be conditional on monitoring operational cash flow and capital injections to cover short-term liabilities as the company establishes its trading history.

2. Financial Strength:
   The balance sheet reflects a fragile position typical of a start-up micro company. Fixed assets (£1,521) are minimal, and current assets (£1,501) do not cover current liabilities (£3,069). The net asset base is only £25, essentially the nominal share capital. No retained earnings or reserves are reported since this is the first accounting period. The company has no employees, consistent with a low operating cost base. Overall, the financial strength is weak with no buffer to absorb adverse events or liquidity shocks.

3. Cash Flow Assessment:
   Net current liabilities indicate a working capital gap, meaning the company’s short-term obligations exceed readily available current assets. This suggests reliance on external funding (shareholder loans, director advances) or timely client payments to meet creditor demands. The absence of profit and loss data limits assessment of operational cash generation. Cash flow management will be critical in the early stages, and the company must demonstrate the ability to convert contracts to cash inflows to service debts.

4. Monitoring Points:

• Improvement in net current assets and positive working capital development.
• Timely filing of next accounts and confirmation statement to maintain compliance.
• Evidence of revenue growth and profitability in subsequent periods.
• Capital injection or financing arrangements to reduce liquidity risk.
• Stability in director appointments and no adverse changes in control or governance.