34RR STUDIO LTD

Executive Summary

34RR STUDIO LTD is an early-stage micro-entity with negligible revenue and significant initial losses, resulting in a weak financial position and no operational cash flow. The company currently lacks the financial strength or liquidity to support credit facilities, and credit extension is not recommended at this time. Close monitoring of future financial performance and cash flow is essential before reconsidering credit exposure.

34RR STUDIO LTD - Analysis Report

Company Number: 14719118

Analysis Date: 2025-07-29 17:25 UTC

1. Credit Opinion: DECLINE
   34RR STUDIO LTD is a newly incorporated micro-entity with extremely limited trading history, reporting negligible turnover (£848) against high material costs (£10,763), resulting in a significant loss (£9,915) in its first 13-month period. The absence of current assets and zero net working capital indicates no readily available liquidity to cover short-term obligations. The company’s balance sheet shows modest fixed assets (£3,409) funded entirely by shareholder equity, but no evidence of operational cash inflows or profitability. Without a track record of revenue generation or positive cash flow, the company currently lacks the financial capacity to service debt or credit facilities. Furthermore, the directors are closely held individuals with no disclosed prior financial performance, limiting assurance on management strength. Given these factors, extending credit at this stage carries high risk.

2. Financial Strength: Weak
   The company’s total net assets of £3,409 are minimal, reflecting the initial capital investment rather than operational success. There are no current assets or liabilities, resulting in zero working capital, which is insufficient to support ongoing operations or meet unexpected expenses. The negative profit and loss position signals that initial business activities have not yet achieved commercial viability. The micro-entity status limits detailed financial disclosures, but the available data portrays a capital-light business with no buffer to absorb losses or fund growth.

3. Cash Flow Assessment: Inadequate
   The absence of current assets, including cash or receivables, combined with no current liabilities, suggests the company neither holds liquid resources nor owes short-term debts. However, with turnover at £848 and cost of materials vastly exceeding revenue, the company is not generating positive operational cash flow. This indicates immediate cash flow constraints and reliance on external funding or shareholder support to sustain business activities.

4. Monitoring Points:

• Track revenue growth and gross margin improvement to assess business viability.
• Monitor cash flow statements on future filings for positive operating cash flow generation.
• Observe changes in working capital components, especially increases in current assets or cash reserves.
• Review management actions to control costs and secure additional funding if necessary.
• Watch for filings of subsequent annual accounts and confirmation statements to ensure compliance and ongoing activity.