Company Number: 12951210

Analysis Date: 2025-07-20 14:01 UTC

1. Risk Rating: LOW
   KRW Studio Limited demonstrates a strong net asset position with consistently positive net current assets and shareholders’ funds over multiple years. The company is current with its filings and operates within the micro-entity accounting framework, which suggests compliance with statutory requirements. The financial data shows stable or improving liquidity and solvency metrics.

2. Key Concerns:

• Limited scale and capital: With a share capital of only £2, the company has minimal equity investment, potentially limiting financial resilience to unexpected shocks.
• Small workforce: Employing only two people including directors may constrain operational capacity and growth potential.
• Lack of detailed profit and loss information: As a micro-entity, the company has not filed full profit and loss accounts, limiting insight into profitability trends and cash flow quality.

3. Positive Indicators:

• Strong liquidity: Current assets greatly exceed current liabilities (£156,888 vs £29,871 in 2024), providing comfortable working capital and low short-term financial risk.
• Growing net assets: Net assets have increased steadily from £54,755 in 2020 to £128,977 in 2024, indicating retained earnings and financial stability.
• Compliance and governance: No overdue filings, timely accounts submission, and clear director appointments with no disqualifications reported suggest good regulatory adherence.

4. Due Diligence Notes:

• Review underlying profitability and cash flow quality, as absence of full P&L accounts limits assessment of operational performance.
• Confirm the nature of current assets to ensure they are liquid and not overstated receivables or stock.
• Investigate dependency on key personnel given the small staff size and directors’ dual roles.
• Assess any off-balance sheet liabilities or contingent risks not visible in the micro-entity accounts.