Company Number: 15399044

Analysis Date: 2025-07-29 14:55 UTC

1. Risk Rating: LOW
   CW Creative Studio Ltd demonstrates a solid net asset position relative to its current liabilities and has no overdue filings, indicating good compliance and financial stability for a micro-entity in its first full financial year.

2. Key Concerns:

• Limited operating history: Incorporated in January 2024, the company has only one accounting period completed, restricting trend analysis and assessment of operational sustainability.
• Small scale: As a micro-entity with minimal fixed assets and a small workforce (3 employees), the company may be vulnerable to market fluctuations and cash flow pressures typical for start-ups.
• Concentrated control: Miss Charlotte Williams holds 75-100% of shares and voting rights and controls director appointments, which could pose governance risks due to lack of independent oversight.

3. Positive Indicators:

• Strong liquidity position: Current assets (£65,745) significantly exceed current liabilities (£22,468), yielding net current assets of £43,524, suggesting good short-term solvency and ability to meet obligations as they fall due.
• Positive net assets/shareholders' funds (£44,633) indicate the company is currently solvent with equity backing.
• Timely compliance: No overdue statutory filings (accounts and confirmation statement) as of the latest due dates, reflecting good regulatory adherence.
• Clear operational focus: SIC code 47910 indicates an e-commerce retail business, which can be scalable with relatively low capital intensity.

4. Due Diligence Notes:

• Review management accounts and cash flow forecasts to verify liquidity beyond the snapshot date and assess ongoing operational viability.
• Investigate business model and revenue streams to understand growth prospects and market positioning given the company's nascent status.
• Assess related party transactions and governance structure given the significant control held by a single individual to identify any potential conflicts or risks.
• Confirm absence of any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.
• Monitor future filing compliance and any changes in director appointments or shareholdings for governance stability.