FUTURE STUDIO CONSULTING LTD

Executive Summary

Future Studio Consulting Ltd demonstrates a weak financial position with negative net assets and working capital deficits, raising concerns about its ability to service credit. The company’s limited scale and lack of employees coupled with increasing liabilities suggest elevated liquidity risk. Credit facilities are not recommended without clear evidence of capital support or operational improvement.

FUTURE STUDIO CONSULTING LTD - Analysis Report

Company Number: 13115241

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE
   Future Studio Consulting Ltd shows persistent negative net assets and shareholders’ funds over the last four financial years, indicating ongoing losses or insufficient capital injection. The net current liabilities position worsened from -£1,437 in 2023 to -£3,315 in 2024 despite a significant increase in current assets, driven by a large increase in current liabilities. The company is a micro entity with no employees and minimal turnover data, and the directors have not provided evidence of profitability or cash flow generation. This raises concerns about the company’s ability to meet its short-term obligations and service any credit facility reliably. Without remedial action or capital infusion, the company’s financial resilience is weak, increasing credit risk considerably.

2. Financial Strength:
   The balance sheet is weak with net liabilities of £3,315 as of January 2024, deteriorating from prior years. Current liabilities exceed current assets, resulting in negative working capital, which implies liquidity stress. Total assets less current liabilities are negative, indicating that the company has insufficient resources to cover its short-term debts. The share capital is nominal (£1,000) and the company has no retained earnings or positive reserves, reflecting cumulative losses or withdrawals. The absence of fixed assets and employees suggests a low operational scale, possibly service-based with limited tangible collateral.

3. Cash Flow Assessment:
   The financials do not disclose cash flow statements, but the negative net current assets and increasing current liabilities imply strained liquidity. The company’s ability to generate or maintain positive operating cash flow is questionable given zero employees and no indication of revenue growth. Working capital management appears weak, and the company may rely on external funding or director loans to sustain operations. The lack of audit and reliance on micro-entity provisions limit transparency on cash flow quality.

4. Monitoring Points:

• Track quarterly or interim financial updates for changes in working capital and net asset position.
• Monitor any capital injections or director loans that may improve liquidity.
• Watch for overdue filings or changes in director status that may indicate distress.
• Review any growth in revenue or profitability indicators to assess potential turnaround.
• Keep an eye on creditor payment patterns and any signs of late payments or disputes.