DREAMTIMESTUDIO LIMITED

Executive Summary

Dreamtimestudio Limited is a newly incorporated micro entity with a positive net asset base and profitability in its first year, supported by timely regulatory filings and sound liquidity. However, its limited operating history and concentrated ownership warrant close monitoring to confirm operational sustainability and governance robustness. Overall, the company currently presents a low risk profile with standard due diligence recommended for a small retail business at this stage.

DREAMTIMESTUDIO LIMITED - Analysis Report

Company Number: SC761796

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position with net current assets of £29,435 and a modest profit of £6,463 in its first 13-month reporting period. It has filed accounts and confirmation statements on time, indicating good compliance and governance practices. The company is micro-sized, limiting complexity and potential risk exposure at this stage.

2. Key Concerns:

• Limited operating history: Incorporated in March 2023, the company has a short track record, making it difficult to assess long-term sustainability and performance trends.
• Small scale and limited asset base: With fixed assets of only £840 and turnover just over £100k, growth prospects and resilience to shocks may be constrained.
• Concentration of control: Single director and 75-100% ownership by one person could pose governance risks if not mitigated by strong internal controls.

3. Positive Indicators:

• Positive profitability and net assets: The company generated a profit and holds net assets of nearly £30k, reflecting initial operational success and strong working capital management.
• Timely statutory filings: No overdue accounts or confirmation statements, indicating attention to regulatory compliance.
• Low gearing and strong liquidity: Current assets comfortably exceed current liabilities, suggesting good short-term financial health.

4. Due Diligence Notes:

• Review cash flow statements (if available) to confirm liquidity beyond balance sheet snapshots.
• Assess customer concentration and supply chain risks given the retail nature of the business.
• Verify governance practices given sole director and shareholder structure, including any related party transactions.
• Monitor future filings to track revenue growth, profit sustainability, and any changes in asset composition or liabilities.