Company Number: 12502418

Analysis Date: 2025-07-20 12:05 UTC

Financial Health Assessment for SRTV MEDIA LIMITED

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1. Financial Health Score: B-

Explanation:
SRTV MEDIA LIMITED shows stable and improving financial conditions with positive net assets and a marginal profit in the latest year. The company has maintained a healthy asset base relative to liabilities, reflecting sound capital structure and solvency. However, the very slim profit margin and low working capital indicate cautious optimism—there are symptoms of financial strain that require attention to avoid future distress.

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2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Turnover	£125,606	Small but growing revenue base (+14% increase from prior year) shows some business growth.
Fixed Assets	£159,617	Significant investment in long-term assets typical for media/creative industry; asset base stable.
Current Assets	£9,650	Limited liquid assets; slight increase from previous year indicating improving liquidity.
Current Liabilities	£8,540	Short-term debts slightly reduced, manageable but needs monitoring.
Net Current Assets (Working Capital)	£1,110	Positive but narrow working capital—sign of tight liquidity; "healthy heartbeat" but fragile.
Net Assets (Equity)	£160,727	Solid equity base demonstrating solvency and cushion against losses.
Profitability (Surplus)	£222	Minimal profit; margin extremely thin, indicating “symptoms of fatigue” in earnings.
Staff Costs	£48,167	Nearly 38% of turnover, reflecting significant operational expense load.
Cost of Materials	£54,103	Represents 43% of turnover; efficient cost management crucial here.
Employee Count	7	Small workforce aligns with micro-entity classification.

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3. Diagnosis

SRTV MEDIA LIMITED is a micro-entity operating in the artistic creation sector with a relatively stable financial structure. The company demonstrates:

• Healthy capital structure: Strong net assets and equity buffer show the business is solvent with no reliance on excessive debt.
• Liquidity concerns: Slightly positive but very narrow working capital signals tight short-term liquidity. The company is able to cover its short-term obligations but only just, which is a sensitive “pulse” that could falter if revenues decline or costs rise unexpectedly.
• Profitability symptoms: The tiny net surplus (£222) on turnover of £125k means earnings are barely breaking even. This “flatline” profit margin suggests the company is in a fragile operational state—any unforeseen costs or revenue drop could push it into loss.
• Stable but cautious growth: Turnover is growing modestly year-on-year, which is encouraging, but the increase in cost of materials and staff costs outpacing revenue growth is a warning sign for operational efficiency.
• Asset investment: Fixed assets remain high, which is typical for a media firm investing in equipment or intellectual property. However, depreciation is low, suggesting assets are relatively new or underutilized.

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4. Recommendations for Financial Wellness Improvement

1. Improve Profit Margins:

   • Review pricing strategy and cost control measures, particularly in materials and staff expenses.
   • Streamline operations to enhance efficiency and reduce overheads without sacrificing quality.

2. Enhance Liquidity Management:

   • Build up cash reserves to increase working capital buffer and better cover short-term liabilities. Consider negotiating better payment terms with suppliers or clients to improve cash flow timing.

3. Asset Utilization Review:

   • Assess fixed asset usage; consider if any underutilized assets can be monetized or better leveraged for revenue generation.

4. Revenue Diversification & Growth Strategy:

   • Explore additional income streams or services within the artistic creation sector to boost turnover and spread risk.

5. Regular Financial Monitoring:

   • Implement monthly financial reviews focusing on cash flow forecasts, cost variances, and profitability trends to catch early symptoms of distress.

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