INTERIA STUDIO LONDON LIMITED

Executive Summary

INTERIA STUDIO LONDON LIMITED demonstrates good financial health with positive net assets and a strong liquidity position typical of a micro-entity in the design sector. The company shows promising growth while maintaining solvency and manageable short-term obligations. To sustain and enhance financial wellness, focus on detailed internal reporting, diversification, and investment in intellectual capital is recommended.

INTERIA STUDIO LONDON LIMITED - Analysis Report

Company Number: 13110237

Analysis Date: 2025-07-20 11:33 UTC

Financial Health Assessment: INTERIA STUDIO LONDON LIMITED

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1. Financial Health Score: B

Explanation:
The company shows a solid foundation with positive net assets and net current assets, indicating a healthy liquidity position and capital structure for a micro-entity. The steady growth in net assets from £8,383 in 2023 to £18,308 in 2024 is a positive sign. However, the small scale of operations and limited fixed assets place constraints on scalability and long-term resilience, preventing a top-tier score.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£866	Very low fixed asset base; typical for service-focused micro businesses.
Current Assets	£27,022	Healthy short-term assets, mainly cash or receivables.
Current Liabilities	£9,080	Manageable short-term debts; not excessive relative to assets.
Net Current Assets (Working Capital)	£17,942	Strong positive working capital indicating liquidity "pulse" is good.
Net Assets (Equity)	£18,308	Positive equity base, improving year on year.
Share Capital	£100	Minimal share capital; typical for small private companies.

Additional Observations:

• The company operates as a micro-entity under FRS 105, simplifying reporting but limiting detailed disclosure.
• The sole director has been in position since incorporation, suggesting stable leadership.
• The company is in a specialised design and architectural services sector (SIC codes 74100, 71111), which is often asset-light and knowledge-driven.

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3. Diagnosis:

• Liquidity: The company exhibits a "healthy cash flow" symptom, with net current assets more than double current liabilities. This implies the business can comfortably meet short-term obligations without distress.
• Solvency: Positive net assets and shareholders' funds indicate the company is solvent with a solid equity buffer, reducing insolvency risk.
• Growth Trajectory: The doubling of net assets and current assets over one year suggests the business is expanding or accumulating reserves, a "sign of vitality."
• Asset Base: The minimal fixed assets reflect the nature of the business (design/architectural consultancy), not a capital-intensive operation. This is typical but means growth is largely dependent on human capital and intellectual property, which can present risks if not managed well.
• Scale and Risk: Being a micro-entity with one employee implies limited operational scale. This concentration can be a vulnerability if key personnel are unavailable or demand fluctuates.

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4. Recommendations:

• Maintain Healthy Liquidity: Continue to monitor working capital ratios regularly to avoid any "symptoms of distress" such as overdue payables or cash shortfalls.
• Enhance Financial Reporting: Although exempt from audit and detailed reporting, consider internal management accounts providing more granular insights into profitability and cash flows. This will improve early detection of operational issues.
• Diversify Revenue Streams: To reduce risk associated with a narrow client base or personnel dependency, explore expanding service offerings or client portfolio.
• Invest in Intellectual Capital: Since fixed assets are low, focus on developing staff skills, client relationships, or proprietary designs to strengthen competitive advantage.
• Plan for Scale: If growth continues, prepare for transition to small company reporting and potentially increase share capital or external funding to support expansion.
• Risk Management: Implement contingency plans for business continuity given the single-employee structure.

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