Company Number: 14094412

Analysis Date: 2025-07-20 14:18 UTC

1. Risk Rating: HIGH
   Despite being an active private limited company, Angharad Studio Limited exhibits significant financial stress indicators, including persistent negative net current assets and shareholders' funds in previous years, with only a marginal improvement in the latest accounting period. The micro-entity size limits the disclosure detail, but the financial position suggests solvency and liquidity risks.

2. Key Concerns:

• Negative Working Capital: The company reported net current liabilities of £4,978 in 2023 and still a negative net current asset position of £92 in 2024, indicating potential liquidity difficulties to meet short-term obligations.
• Historical Losses and Negative Equity: Shareholders’ funds were negative (£4,978) in prior years, only turning slightly positive (£119) in 2024, implying previous accumulated losses and a fragile equity base.
• Limited Operational Scale and Employee Base: With an average of only one employee and minimal fixed assets (£211 in 2024), the business scale is very small, which may impact operational sustainability and ability to generate sufficient cash flow.

3. Positive Indicators:

• Recent Improvement in Financial Position: The 2024 accounts show a slight recovery from prior negative equity and working capital, with net assets now positive at £119, reflecting some progress in stabilizing finances.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements and no immediate governance or regulatory red flags.
• Strong Ownership Control: The sole director and 75-100% shareholder is the same individual, which may streamline decision-making and align interests for turnaround efforts.

4. Due Diligence Notes:

• Cash Flow Analysis: Review detailed cash flow statements or bank statements to assess actual liquidity and operating cash generation beyond balance sheet snapshots.
• Revenue and Profit Trends: Obtain turnover and profit & loss data to understand if recent financial improvements are sustainable or due to one-off items.
• Director’s Strategic Plans: Investigate the director’s plans for growth, capital injection, or restructuring to address historical losses and working capital deficits.
• Supplier and Creditor Relationships: Assess if current liabilities include overdue payments or strained trade credit terms that could threaten ongoing operations.
• External Financing: Clarify if the company has access to external funding or guarantees that could mitigate liquidity risks.