Company Number: 13937690

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: MEDIUM

Lewin Studios Ltd demonstrates positive trends in liquidity and net assets growth; however, there are concerns regarding provisions for liabilities and the very small scale of operations. As a micro-entity with limited financial disclosures and only one employee, the business appears nascent and may face challenges in operational stability and solvency as it grows.

2. Key Concerns:

• Provisions for liabilities increasing: The company shows significant provisions (£11,143 in 2024 up from £8,840 in 2023), which materially reduce net assets and may indicate potential contingent liabilities or future expenses that could impact financial stability.
• Low fixed assets and small scale: Fixed assets are minimal (£1,129 in 2024) and the company employs only one person, raising questions about long-term operational sustainability and capacity to scale.
• Limited financial history and disclosure: Incorporated in 2022, the company has a very short track record with micro-entity accounts, limiting insight into profitability, cash flow, or revenue trends.

3. Positive Indicators:

• Improved liquidity position: Current assets increased from £7,903 in 2023 to £15,137 in 2024, and net current assets improved significantly, indicating good short-term liquidity management.
• Growing net assets and shareholders’ funds: Net assets increased from £293 in 2022 to £1,936 in 2024, reflecting retained earnings or capital injections strengthening the balance sheet.
• On-time filings with Companies House: Both accounts and confirmation statements are current and not overdue, suggesting compliant governance and regulatory adherence.

4. Due Diligence Notes:

• Investigate the nature and origin of the provisions for liabilities to assess their potential impact on solvency.
• Review detailed profit and loss statements, cash flow data, and revenue sources if available, to evaluate operational performance and sustainability.
• Confirm if any external financing or guarantees support the company, given the limited asset base.
• Assess the business model and market position within video production activities (SIC 59112) to understand growth prospects.
• Verify director and shareholder background given sole control by Xxxxxx Xxxxxxxxname shown to subscribers, ensuring no conflicts or risks associated with related parties.