Company Number: 13971207

Analysis Date: 2025-07-29 18:24 UTC

1. Credit Opinion: DECLINE
   AVERY STUDIO LTD shows a persistently negative net asset position worsening from -£3,735 in 2023 to -£6,947 in 2024. The absence of any fixed or current assets alongside current liabilities of £6,947 indicates poor working capital and negative liquidity. The company has no recorded cash or receivables to cover short-term debts, raising serious concerns about its ability to meet financial obligations. The business is also very young (incorporated 2022) and micro-sized with only one employee, limiting financial resilience. Without additional capital injection or demonstrated revenue growth, credit exposure is high risk.

2. Financial Strength:
   The company’s balance sheet is weak with no tangible or current assets and liabilities due within one year exceeding assets, resulting in negative net current assets and shareholders’ funds. The negative equity is increasing, indicating accumulated losses or unpaid creditors. There is no sign of fixed asset investment or working capital improvement. This financial position suggests inadequate capitalization and poor buffer to absorb business shocks.

3. Cash Flow Assessment:
   No current assets are reported, implying no cash or near-cash resources. The company’s current liabilities are modest but cannot be covered by any liquid resources on the balance sheet. This indicates negative working capital and potential cash flow strain. The business likely relies on external funding or owner financing to meet ongoing expenses, which may not be sustainable without revenue growth or profitability.

4. Monitoring Points:

• Track any future capital injections or shareholder loans that improve liquidity and net assets.
• Monitor subsequent accounts for improvement in current assets, revenue, and profitability.
• Watch for overdue filings or signs of financial distress such as late payments or director changes.
• Review cash flow statements if available to assess operational cash generation.