GQ STUDIOS LTD

Executive Summary

GQ Studios Ltd is a micro-entity operating in specialist photography with positive equity but ongoing liquidity challenges as evidenced by negative net current assets. The company maintains good regulatory compliance and appears operationally active, yet limited scale and asset reductions highlight potential operational constraints. Further investigation into cash flow dynamics and asset management is recommended to better understand sustainability.

GQ STUDIOS LTD - Analysis Report

Company Number: 13114307

Analysis Date: 2025-07-20 15:18 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain, particularly negative net current assets, indicating potential liquidity pressures. However, it remains solvent with positive shareholders’ funds and no overdue filings, which tempers immediate risk concerns.

2. Key Concerns:

• Negative Net Current Assets: For the latest financial year ending March 2023, net current liabilities stand at £1,744, worsening from the previous year, signaling potential difficulty meeting short-term obligations.
• Declining Fixed Assets: Fixed assets decreased from £12,226 in 2022 to £7,593 in 2023, which may indicate asset disposals or underinvestment in infrastructure.
• Minimal Share Capital and Employee Base: Share capital is nominal (£10), and the company employs only one person, which may constrain operational scalability and resilience.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good compliance and governance practices.
• Positive Shareholders’ Funds: Despite liquidity concerns, the company retains positive equity (£5,849), indicating solvency at balance sheet date.
• Active Website and Market Presence: The company maintains an active website describing its niche in specialist photography, suggesting ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature and timing of any recent asset disposals reflected in fixed asset decreases.
• Review detailed creditor aging and payment terms to assess liquidity risk more granularly.
• Verify revenue trends and profitability to understand whether negative working capital is a temporary issue or a structural problem.
• Assess director's strategic plans for managing current liabilities and supporting growth given the micro-entity scale.
• Confirm no director disqualification or regulatory compliance issues exist beyond the data provided.