Company Number: 13659571

Analysis Date: 2025-07-20 17:57 UTC

1. Credit Opinion: APPROVE
   FFORD STUDIO LTD demonstrates sound financial health for a micro-entity with growing net assets and strong working capital. The business shows positive financial trajectory with an increase in net current assets from £93.6k to £147.8k year-over-year, indicating improved liquidity and capacity to meet short-term obligations. The company is active, compliant with filing deadlines, and has stable ownership and management under a single director with full control, which suggests clear accountability and decision-making. No adverse records such as insolvency or director disqualification are noted.

2. Financial Strength:
   The balance sheet reveals modest fixed assets (£1.1k) consistent with a service-based design activity company and significant current assets (£174.7k) primarily likely cash or receivables. Current liabilities are low (£26.9k), resulting in strong net current assets of £147.8k and total net assets of £148.9k, all attributable to shareholders’ funds. The growth in net assets and working capital from the previous year reflects profitable operations or retained earnings, supporting financial stability. The micro-entity size limits risk exposure from large debt.

3. Cash Flow Assessment:
   Current assets substantially exceed current liabilities, indicating solid liquidity and ability to cover short-term debts comfortably. The company has sufficient working capital (£147.8k) to support ongoing operations without reliance on external financing. The absence of overdue filings suggests good administrative control, and a single employee structure implies low fixed overheads. This liquidity profile reduces credit risk and supports loan servicing capability.

4. Monitoring Points:

• Continued maintenance or growth of net current assets to safeguard liquidity.
• Monitor any changes in current liabilities, especially trade creditors or short-term borrowings.
• Watch for expansions in fixed assets or employee numbers that could increase financial commitments.
• Keep an eye on director stability and any changes in ownership or control that might affect governance.
• Review future accounts for sustained profitability and cash flow, especially as the company grows beyond micro-entity thresholds.