Company Number: 14802483

Analysis Date: 2025-07-29 14:44 UTC

1. Credit Opinion: DECLINE
   Supermoon Digital Media Ltd is a recently incorporated private limited company operating as an advertising agency. The latest financials show a net current liabilities position of £2,000 and minimal shareholders' funds of £325. Current liabilities exceed current assets, mainly driven by taxation and social security obligations of £7,028, indicating liquidity pressures. This weak working capital position and negative net current assets suggest the company may struggle to meet short-term obligations. Given the limited trading history (less than one year) and lack of profitability data (income statement not filed), the ability to service debt or credit facilities is uncertain and currently inadequate to support additional credit risk.

2. Financial Strength:
   The balance sheet shows total assets of £8,653 (fixed assets £2,325 and current assets £6,328) against current liabilities of £8,328. Shareholders’ funds are positive but nominal at £325, reflecting the company's infancy and low capitalisation. The tangible fixed assets consist of plant and machinery net book value £2,325, implying some investment in operational capacity. However, the negative net working capital of £2,000 is a concern. The high tax and social security creditor (£7,028) within current liabilities signals possible cash flow timing issues or undercapitalisation. Overall, the financial base is fragile with insufficient buffer to absorb setbacks or increased credit exposure.

3. Cash Flow Assessment:
   Cash on hand is £2,828, which covers only a fraction of the current liabilities due within one year. The company holds stock/work in progress valued at £3,500, but this may not be readily convertible to cash without delay or loss. The net current liabilities position indicates working capital deficiency, raising concerns about liquidity and the ability to fund day-to-day operations without external support. No information on operating cash flows is available, but the unfiled income statement and the company’s startup status mean cash generation from operations is unproven. The risk of delayed payments or reliance on director funding remains high.

4. Monitoring Points:

• Monitor quarterly cash flow statements and working capital trends to assess liquidity improvements.
• Watch filings of future accounts including profit and loss to evaluate revenue generation and profitability.
• Track payment behavior on tax and social security liabilities to avoid enforcement actions.
• Assess any additional capital injections or director loans to strengthen the balance sheet.
• Review any changes in creditors or trade payables that may signal worsening credit position.