IMPART STUDIO LIMITED

Executive Summary

Impart Studio Limited is a recently formed micro-entity with a weak financial base and negative net assets, indicating potential liquidity and solvency concerns. The absence of operating history and current working capital deficit present a high credit risk. Credit facilities cannot be recommended until the company demonstrates improved financial resilience and cash flow stability.

IMPART STUDIO LIMITED - Analysis Report

Company Number: SC781285

Analysis Date: 2025-07-20 11:24 UTC

1. Credit Opinion: DECLINE
   Impart Studio Limited is a newly incorporated micro-entity with only one financial year of data. The company shows net liabilities of £1,804 and net current liabilities of £2,937, indicating an immediate working capital deficiency. The negative equity and lack of positive net assets suggest the business is undercapitalised at this early stage and may struggle to meet short-term obligations without additional funding. The absence of historical performance or profitability trends increases credit risk. Given these factors, extending credit facilities at this time poses a high risk with limited assurance of repayment capability.

2. Financial Strength:
   The balance sheet as of 30 September 2024 reveals fixed assets of £1,133 and current assets of £2,432, mostly cash or receivables presumably. However, current liabilities stand at £5,369, causing net current liabilities of £2,937 and overall net liabilities of £1,804. Shareholders’ funds are negative, reflecting accumulated losses or start-up costs exceeding capital introduced. The company’s financial footing is fragile, showing no retained earnings or reserves to absorb shocks. This weak equity position evidences minimal buffer against downturns or unexpected expenses.

3. Cash Flow Assessment:
   The working capital deficit signals liquidity constraints—current assets are insufficient to cover short-term liabilities. Given the micro size and recent incorporation, cash flow is likely tight, and the company may rely on owner funding or external injections to support operations. Without positive net current assets, the business may face challenges in meeting creditor payments on time. No information on profit & loss or cash flow statements is provided, limiting further assessment, but the balance sheet highlights a need for improved liquidity management.

4. Monitoring Points:

• Track monthly cash flow closely to ensure ongoing liquidity and timely payment of creditors.
• Review subsequent annual accounts for improvement in net assets and working capital.
• Monitor any additional capital contributions or loans from the director or third parties.
• Watch for timely filing of accounts and confirmation statements to gauge compliance and operational stability.
• Assess any changes in business scale, client base, or profitability as these will impact creditworthiness.