AMETHYST DESIGN STUDIO LTD

Executive Summary

Amethyst Design Studio Ltd has shown a marked improvement in financial position over the latest year, moving from negative to positive working capital and net assets. The company’s micro-entity scale and single-director ownership limit complexity, supporting a stable credit profile. Approval of credit with standard monitoring on liquidity and operational performance is recommended.

AMETHYST DESIGN STUDIO LTD - Analysis Report

Company Number: 13258263

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: APPROVE
   Amethyst Design Studio Ltd demonstrates an improving financial position with positive net current assets and net assets in the latest financial year. The company shows evidence of recovering from prior year liquidity pressures, indicating an ability to meet short-term obligations. Given its micro-entity status, limited employees, and controlled share structure under a single director/owner, the business profile is stable with manageable risk for credit extension.

2. Financial Strength:
   The balance sheet as at 31 March 2024 shows total net assets of £5,222, up from a marginal £20 the previous year. Fixed assets are minimal at £601, appropriate for a design studio, with current assets of £12,702 comfortably exceeding current liabilities of £8,081, resulting in positive working capital of £4,621. This turnaround from a negative working capital position in 2023 reflects improving operational management and financial health. The share capital remains nominal (£20), with growth manifesting in retained earnings or reserves.

3. Cash Flow Assessment:
   Current assets largely consist of liquid or near-liquid resources, given the nature of the business and asset composition. Positive net current assets indicate sufficient short-term liquidity to cover creditors due within one year. The absence of audit and reliance on micro-entity reporting standards limits visibility into cash flow statements, but balance sheet improvements suggest adequate cash flow generation or management of receivables and payables. The small scale (one employee) reduces fixed overheads, supporting cash conservation.

4. Monitoring Points:

• Continued positive trend in working capital and net asset growth in subsequent filings to confirm financial stability.
• Cash flow details or supplementary disclosures to better assess operational liquidity and debt servicing capacity.
• Any changes in director or ownership structure that might impact governance or financial control.
• Trading performance indicators, given the specialized design activity sector's sensitivity to client demand and economic cycles.