IDLE GRAFT STUDIO LTD

Executive Summary

IDLE GRAFT STUDIO LTD is a micro-entity with a strong financial position characterized by growing net assets and solid working capital. The company shows prudent financial management and sufficient liquidity to meet short-term liabilities. Credit approval is recommended with routine monitoring of financial performance and compliance filings.

IDLE GRAFT STUDIO LTD - Analysis Report

Company Number: 14007572

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: APPROVE
   IDLE GRAFT STUDIO LTD demonstrates a stable and improving financial position with positive net assets and working capital. As a micro-entity with a single director/shareholder, the company shows sound financial stewardship evidenced by consistent net asset growth over the three reported years. No negative indicators such as overdue filings, director disqualifications, or liquidity constraints are present. The company’s ability to meet short-term obligations appears solid, and its low gearing (no long-term liabilities reported) reduces credit risk.

2. Financial Strength:
   The company’s net assets have increased from £16,051 (FY 2022) to £23,824 (FY 2024), indicating retained earnings and a strengthening equity base. Fixed assets are minimal (£2,185 in FY 2024), typical for a service/software business. Current assets have grown to £30,040 while current liabilities remain low at £8,401, resulting in strong net current assets (£21,639) and a healthy liquidity buffer. The absence of long-term debt further underscores financial stability.

3. Cash Flow Assessment:
   With net current assets significantly positive and current liabilities less than one-third of current assets, the company maintains adequate liquidity for operational needs. Average employee count remains at 1, consistent with a small structure and likely low fixed overhead. The company’s working capital position gives confidence in short-term cash flow sufficiency to cover trade creditors and other payables.

4. Monitoring Points:

• Track revenue trends and profitability as they become available, since micro-entity accounts provide limited detail.
• Monitor any increases in current or long-term liabilities that could pressure liquidity.
• Watch for changes in director or ownership structure, given the reliance on a single individual for control.
• Ensure timely filing of next accounts and confirmation statement to avoid compliance risks.