HERMES CREATIVE STUDIO LIMITED

Executive Summary

Hermes Creative Studio Limited shows steady financial growth and a solid balance sheet suited to a micro-business. Liquidity levels are adequate to cover short-term liabilities, and the company's simple ownership structure enables clear governance. Given these factors and no adverse indicators, credit approval is recommended with standard monitoring of liquidity and compliance.

HERMES CREATIVE STUDIO LIMITED - Analysis Report

Company Number: 12496484

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: APPROVE - Hermes Creative Studio Limited demonstrates a stable financial position with consistent net assets growth over recent years and no overdue filings. The company operates in a niche creative market with a single director controlling 100% ownership and voting rights, indicating clear decision-making. The micro-entity status and minimal staff suggest a lean operation with manageable risk. There is no indication of financial distress, and current liabilities remain well covered by current assets. However, the limited scale and single-person management imply a need for cautious credit limits.

2. Financial Strength: The company’s balance sheet shows modest but steady growth in net assets from £6,017 in 2019 to £8,348 in 2023. Fixed assets have increased slightly, reflecting some reinvestment, while net current assets remain positive, supporting working capital needs. Total liabilities are low, with only £671 of long-term creditors at year-end 2023. Shareholders’ funds have increased incrementally, reflecting retained earnings or capital injections. The overall financial structure is sound for a micro-business, with no indications of over-leverage or solvency risks.

3. Cash Flow Assessment: Current assets of £21,073 cover current liabilities of £16,289, yielding a positive net current asset position of £4,784. This indicates sufficient liquidity to meet short-term obligations. The company’s working capital ratio (current assets/current liabilities) is approximately 1.29, above the critical threshold of 1.0, suggesting reasonable operational liquidity. The small scale and single employee reduce fixed overhead demands, enhancing cash flow stability. Lack of detailed profit and loss data limits deeper cash flow analysis but no red flags arise from current balance sheet data.

4. Monitoring Points:

• Track future filings and accounts to ensure continued compliance and timely submission.
• Monitor net current assets and liquidity ratios to detect any deterioration in working capital.
• Watch for any significant changes in director or ownership structure that could affect governance.
• Assess the impact of market conditions on the niche creative sector, including demand for specialist photography and design services.
• Review any emerging long-term liabilities or credit facilities that may affect leverage.