Company Number: 13616556

Analysis Date: 2025-07-29 13:33 UTC

1. Credit Opinion: DECLINE
   Shorkk Limited presents a weak credit profile with persistent negative net assets and net current liabilities over the last three financial years. The company is loss-making, as evidenced by the increasing retained earnings deficit (£-24,145 as of 2024) and the directors' reliance on continued financial support to maintain operations. The substantial director loan account (£43,679 creditors) indicates dependency on related-party funding rather than sustainable cash generation. This raises concerns about the company’s ability to service external debt or commercial credit independently.

2. Financial Strength
   The balance sheet shows net liabilities of £24,143 at the latest year end (2024), worsening from £18,662 in 2023, reflecting a deteriorating financial position. Fixed assets (£3,806) are minimal relative to current liabilities (£46,529), and working capital is negative by £27,226, indicating insufficient short-term asset coverage to meet liabilities. The company has a very low equity base (called-up share capital of only £2) and no retained earnings cushion, which limits financial resilience.

3. Cash Flow Assessment
   Cash balances are low and relatively stagnant (£11,891 in 2024 vs £11,227 in 2023). Small debtor balances (£53) and a significant stock reduction (£7,359 from £14,614) suggest limited cash inflows and constrained liquidity. Negative net current assets highlight ongoing working capital strain. The company relies heavily on director financial support rather than operational cash flow, raising liquidity concerns for meeting debt service requirements or unexpected expenses.

4. Monitoring Points

• Monitor director loan account movements and any changes in director financial support commitment.
• Track improvement or further deterioration in net assets and working capital position in future accounts.
• Watch for any delays in filing accounts or confirmation statements, as overdue filings may signal operational distress.
• Observe cash flow generation and turnover trends to assess if business operations are improving or further weakening.