SHDW LTD.

Executive Summary

SHDW LTD is currently in a weak financial position with negative net assets and working capital deficits, indicating liquidity and solvency concerns. The company’s limited scale and deteriorating balance sheet raise significant credit risk, leading to a recommendation to decline new credit facilities at this time. Close monitoring of cash flow and capital structure changes is advised for any future reassessment.

SHDW LTD. - Analysis Report

Company Number: 13122959

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion:
   DECLINE. SHDW LTD exhibits a fragile financial position with a recent significant deterioration. The company’s net assets have swung from a positive £1,362 in 2024 to a negative £1,766 at the latest year-end (2025), indicating an erosion of equity and potential solvency concerns. Current liabilities exceed current assets by £2,744, reflecting working capital deficiency and liquidity risks. Given these factors, the company’s ability to meet short-term obligations and service new or existing credit facilities is questionable without additional capital or operational improvement.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£978) and a declining current asset base (from £7,816 in 2024 down to £3,010 in 2025). The sharp increase in current liabilities (from £6,454 in 2024 to £5,755 in 2025, though slightly lower, combined with the drop in current assets) has caused negative net current assets of £2,744. The company’s shareholders’ funds are negative, indicating that liabilities exceed assets. This signals weak financial resilience and raises concerns about the sustainability of the business without external support or improved cash management.

3. Cash Flow Assessment:
   The negative working capital suggests strained liquidity and potential difficulties in meeting short-term commitments. The decline in current assets, particularly cash or equivalents, and the limited fixed asset base imply minimal collateral for lending. The company’s micro-entity status and minimal employee base (1 employee) suggest low operating scale, which may limit cash inflows. Without detailed cash flow statements, the trend indicates that operational cash generation is insufficient to cover liabilities, presenting a risk to ongoing creditworthiness.

4. Monitoring Points:

• Track quarterly or interim updates on working capital and net asset position to detect further deterioration.
• Monitor accounts receivable aging and creditor payment terms to assess cash flow pressures.
• Watch any capital injections or shareholder funding that might improve equity and liquidity.
• Review management actions on cost control and revenue generation in advertising and IT consultancy sectors.
• Stay alert for any changes in director appointments or adverse credit events.