Company Number: SC670511

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: LOW

The company BHIK Studios Ltd demonstrates improving financial health with positive net current assets and shareholders’ funds in the latest financial year. It is current with statutory filings and shows no signs of insolvency or regulatory non-compliance, indicating low immediate risk.

2. Key Concerns:

• The company operates in the micro entity category with limited scale, which may restrict its operational and financial flexibility.
• Historical financials showed negative net current assets for multiple periods before the recent improvement, suggesting previous liquidity challenges.
• Fixed assets are minimal, which could imply limited tangible collateral to support borrowing or absorb shocks.

3. Positive Indicators:

• Recent financials (year ended 30 April 2024) show a significant turnaround to positive net current assets (£15,640) and shareholders’ funds (£16,847), indicating improved solvency.
• No overdue filings of accounts or confirmation statements, demonstrating good regulatory compliance.
• The company has added one employee recently, suggesting some operational expansion.
• Ownership and control are clearly documented with no director disqualifications or governance red flags.

4. Due Diligence Notes:

• Examine the underlying drivers of the financial turnaround between 2023 and 2024, including revenue growth, cost management, or capital injections.
• Review cash flow statements if available to confirm liquidity strength beyond balance sheet figures.
• Assess the business model sustainability given the micro scale and limited fixed assets.
• Verify the extent of related party transactions or any contingent liabilities not disclosed in abbreviated accounts.
• Consider the background and capacity of the directors to manage growth and financial risks in a small software development firm.