Company Number: 13726139

Analysis Date: 2025-07-29 12:56 UTC

1. Credit Opinion: APPROVE
   Automator Studio Ltd demonstrates a strong balance sheet with substantial net assets (£1,000,551) relative to its liabilities. The company maintains minimal current liabilities (£2,601) against sizeable current assets (£1,000,655), indicating solid short-term liquidity. Although newly incorporated in late 2021, the company’s financial position shows stability and no overdue filings or signs of distress. The director is the sole significant controller, suggesting clear management responsibility, but the company should be monitored for concentration risk.

2. Financial Strength:
   The company’s financials reflect a very strong equity base with shareholders’ funds of £1,000,000, unchanged over the past two years, supporting capital adequacy. Fixed assets are negligible (£2,497), implying low investment in physical assets, consistent with a software development business. Debtors are high (£1,000,000), which could indicate significant receivables or intercompany balances; this requires confirmation to ensure collectability. Current liabilities are very low (£2,601), yielding a healthy net current asset position (£998,054).

3. Cash Flow Assessment:
   Cash holdings are minimal (£655), raising a note on immediate liquidity despite large receivables. The cash-to-current liabilities ratio is low, suggesting potential reliance on debtor collections or external funding for day-to-day cash needs. However, the company’s strong net current assets and minimal liabilities reduce immediate liquidity risk. The working capital position is robust, but the concentration of assets in debtors necessitates monitoring of debtor aging and collection efficiency.

4. Monitoring Points:

• Debtor quality and aging: Confirm that the substantial debtor balance is recoverable and not overstated.
• Cash flow trends: Monitor cash balances relative to liabilities to ensure liquidity is maintained, especially given low cash reserves.
• Director concentration risk: Single director and majority owner control require oversight on governance and financial management.
• Business growth and profitability: As a young company, track revenue growth, profitability, and operational cash flow development in upcoming accounts.
• Name change impact: The recent company name change (from IOS CODE DEV LTD to AUTOMATOR STUDIO LTD) should be assessed for any operational or reputational implications.