Company Number: 14266621

Analysis Date: 2025-07-29 15:07 UTC

1. Credit Opinion: APPROVE

Boddy Studios Limited presents a solid credit profile for a relatively young company incorporated in August 2022. The company is active and has no overdue filings or accounts, which indicates good compliance discipline. The financials show consistent growth in net assets and working capital, with net assets more than doubling from £173,832 in 2023 to £358,991 in 2024. Cash reserves have increased significantly to £346,171, providing a strong liquidity buffer to cover short-term obligations of £93,054. The business operates in sound recording and music publishing, a sector that can be cyclical but currently shows no signs of distress in this case. The sole significant controller is a director with full ownership, which points to clear and stable management. No adverse director conduct records exist.

2. Financial Strength:

• Fixed assets increased from £7,737 to £28,940, reflecting investment in tangible assets, which is positive for operational capacity.
• Current assets rose from £265,853 to £423,105; within this, cash increased by about 78% year-on-year.
• Current liabilities decreased slightly from £99,758 to £93,054, improving net current assets to £330,051 (a strong working capital position).
• Shareholders' funds increased to £358,991, showing solid equity backing.
• Overall, the balance sheet is healthy with no long-term liabilities reported, indicating low financial leverage and risk.

3. Cash Flow Assessment:

• Cash of £346,171 against current liabilities of £93,054 provides a very comfortable current ratio (approximately 4.5x), indicating excellent short-term liquidity.
• Debtors are well-managed at £76,934, comparable to previous year levels.
• The company’s working capital is positive and increasing, showing good operational cash flow management.
• No indication of reliance on overdrafts or short-term borrowings.
• Profit and Loss reserves have increased, suggesting retained earnings are being accumulated rather than losses incurred.

4. Monitoring Points:

• Monitor cash flow trends to ensure that growth in fixed assets does not strain liquidity.
• Keep watch on debtor aging and any increase in current liabilities that could pressure working capital.
• Review revenue streams and profitability as the company remains relatively new and sector risk (music & sound recording) can be volatile.
• Monitor changes in director appointments and ownership structure for potential governance impacts.
• Ensure continued compliance with filing deadlines to avoid regulatory penalties.