SHEER CONTENT CREATION LIMITED

Executive Summary

Sheer Content Creation Limited shows early signs of growth in assets and liquidity but is currently thinly capitalized with considerable long-term liabilities. While the company maintains positive working capital, its financial resilience is limited, warranting conditional credit approval with ongoing monitoring of cash flows and debt servicing capability. Further financial information is advised before increasing credit exposure.

SHEER CONTENT CREATION LIMITED - Analysis Report

Company Number: 14356095

Analysis Date: 2025-07-20 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sheer Content Creation Limited is a micro-entity with limited financial history, incorporated less than two years ago. The company shows growth in current assets and net assets between 2023 and 2024, indicating some progress. However, the presence of significant long-term creditors (£48,534) relative to very modest net assets (£386) signals potential gearing and liquidity risk. The company is currently able to maintain positive net current assets (£42,021), but the small equity base and reliance on external funding warrant caution. Credit approval is conditional on monitoring cash flow closely and obtaining additional financial information regarding debt servicing capacity.

2. Financial Strength:
   The balance sheet presents a modest fixed asset base (£8,005) and a healthy increase in current assets from £16,250 to £44,597 year-on-year, reflecting improved liquidity. However, long-term liabilities have nearly doubled from £25,953 to £48,534, which is high relative to the net asset value. Shareholders’ funds remain minimal (£386), suggesting the company is thinly capitalized. The company’s financial position is fragile and dependent on sustaining or increasing cash flows to service its liabilities.

3. Cash Flow Assessment:
   Net current assets improved significantly to £42,021, indicating positive short-term liquidity. The average employee number is one, implying low overheads and potentially lean operations. However, the mismatch between current assets and substantial long-term creditors raises concerns about the company’s ability to meet obligations if cash inflows falter. There is no audit or detailed cash flow statement available, so verification of cash generation and working capital cycles is recommended.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to ensure liquidity remains adequate.
• Monitor repayment of long-term liabilities and any increases in creditors.
• Watch for any changes in ownership or director status that might affect governance.
• Review subsequent accounts and financial disclosures for profitability and equity improvements.
• Assess business activity level and client concentration given the nature of artistic creation and advertising services.