Company Number: 13841621

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: DECLINE
   Cosmic Cowboy Studio Ltd is an active private limited company classified as dormant for filing purposes yet has filed accounts indicating trading activity with a significant operating loss (£27,739 loss for the year ended 31 January 2024) and minimal turnover (£1,907). The company’s cash reserves have drastically diminished from £19,904 to £1,001 within one year, evidencing poor liquidity and an inability to generate sufficient revenue to cover costs. The director is the sole significant controller, with no indication of external capital or financial support. Given the substantial losses, minimal current assets, and lack of profitability, the company does not demonstrate the financial capacity to service debt or credit facilities at this time.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (none reported) and a sharp reduction in current assets, primarily cash, from nearly £20k to just over £1k in one year. Net assets decreased correspondingly from £19,904 to £1,001. Shareholders funds mirror this decline, indicating erosion of retained earnings due to losses. The company operates with only one employee and minimal turnover, which suggests limited operational scale and financial resilience. Overall, the financial structure is weak, with no buffer to absorb further financial stress.

3. Cash Flow Assessment:
   The company’s net current assets have dropped significantly, reflecting a severe depletion of working capital. Cash on hand is minimal (£1,001), raising concerns about liquidity and the ability to meet short-term obligations. The operating loss is large relative to turnover, indicating cash burn. Without substantial cash inflows or capital injections, the company is at risk of cash flow difficulties, which undermines its ability to service credit facilities or meet payment terms reliably.

4. Monitoring Points:

• Turnover growth and trend: Monitor if revenues increase sustainably beyond current minimal levels.
• Profitability trajectory: Watch for reduction in operating losses and eventual positive net income.
• Cash reserves and working capital: Ensure cash balances improve to support operations and debt servicing.
• Director and ownership changes: Note any additional capital injections or changes in ownership that might strengthen the financial position.
• Filing compliance: Maintain up-to-date statutory filings as a basic governance metric.