Company Number: 13951269

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: MEDIUM
   While KHATH STUDIOS LTD is solvent with positive net assets and no overdue filings, there is a notable decline in net current assets and net assets from 2023 to 2024, which raises moderate concern about financial stability and liquidity. The company’s micro-entity status limits available financial detail, reducing transparency.

2. Key Concerns:

• Declining Net Assets: Net assets decreased sharply from £47,404 in 2023 to £8,503 in 2024, indicating a significant reduction in financial buffer.
• Reduced Current Assets: Current assets dropped from £79,077 to £28,160 year-on-year, which may signal cash flow constraints or asset liquidation.
• Limited Financial Disclosures: As a micro-entity, the company files filleted accounts without a profit and loss statement, limiting insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Solvency Maintained: The company remains solvent with net current assets positive at £9,653 and shareholders’ funds positive at £8,503 as of March 2024.
• Timely Compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Stable Leadership and Control: Single director and 100% owner Ms Kirsty Hathaway provides clear accountability and control structure without apparent governance disputes.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp reduction in net assets and current assets between 2023 and 2024, including any one-off expenses or asset disposals.
• Request or review profit and loss accounts and cash flow statements to assess operational performance and liquidity trends directly.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could impact solvency.
• Verify director’s plans and financial strategy to restore or improve the company’s financial position.