FUTURE TRAVEL STUDIO LTD

Executive Summary

Future Travel Studio Ltd presents a low risk profile based on its strong liquidity position, increasing equity base, and good compliance record. While director advances and concentrated control warrant some attention, the company’s financials indicate operational stability for its size. Further due diligence on director loans and business sustainability is recommended to confirm ongoing viability.

FUTURE TRAVEL STUDIO LTD - Analysis Report

Company Number: 13455436

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets and positive shareholders' funds with no overdue filings or signs of financial distress. Its micro-entity accounting and exemption from audit are consistent with its size and stage of development.

2. Key Concerns:

• Director Advances: The directors have net negative balances with the company (e.g., Mr. Lusardi -£795, Mr. Fisher -£209), indicating they owe funds to the company, which can be a liquidity consideration if repayments are delayed or contentious.
• Concentration of Control: Three directors each own between 25-50% of shares and voting rights, indicating control is tightly held. This concentration could pose governance risks if disagreements arise.
• Limited Financial History: With incorporation in 2021 and only three years of accounts, there is limited historical performance data to assess long-term operational sustainability.

3. Positive Indicators:

• Strong Liquidity Position: Current assets significantly exceed current liabilities (£139k vs £93k in 2024), yielding net current assets of £45k, a healthy working capital position for a micro entity.
• Increasing Equity: Shareholders’ funds have increased from £346 in 2021 to nearly £50k in 2024, showing retained earnings growth and capitalization improvement.
• Compliance: No overdue accounts or confirmation statement filings, suggesting good regulatory compliance and governance standards.
• Stable Employment: Consistent employee numbers (3) over the last two years indicate operational stability.

4. Due Diligence Notes:

• Review the nature and terms of director advances, including repayment schedules and whether these could impact cash flow or creditor confidence.
• Explore the business model’s revenue drivers and client base to assess sustainability beyond the micro-entity scale financials.
• Verify absence of contingent liabilities or off-balance sheet obligations not disclosed in the filleted accounts.
• Confirm no director disqualifications or legal proceedings against the company or its key personnel.
• Consider obtaining management accounts or cash flow forecasts to supplement limited historical data.