LFF STUDIO LIMITED

Executive Summary

LFF Studio Limited has demonstrated a positive turnaround from initial losses to a modestly positive net asset position within two years of incorporation. Despite this progress and good compliance with filing requirements, the company's small scale and limited financial history pose medium risk to creditors and investors. Further due diligence on operational performance and cash flow is recommended to fully assess sustainability.

LFF STUDIO LIMITED - Analysis Report

Company Number: 14252963

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround from a net liability position in prior years to a positive net asset position as of April 2024. However, the overall scale is very small and the company is relatively new, limiting the robustness of financial history. The current asset base remains modest, and working capital is positive but limited.

2. Key Concerns:

• Limited Financial History and Scale: Incorporated in mid-2022 with only two full years of accounts, the company has a very limited financial track record. The micro-entity status reflects low turnover and size, increasing vulnerability to operational shocks.
• Previous Negative Net Assets: The company reported net liabilities of £2,784 in both 2022 and 2023, indicating initial undercapitalisation or losses that may affect creditworthiness.
• Modest Current Assets and Working Capital: While net current assets improved to £20,948 in 2024, this remains a small buffer. The company must maintain cash flow discipline to meet liabilities as they fall due.

3. Positive Indicators:

• Significant Improvement in Financial Position: The net asset position improved to £76,781 by April 2024, reflecting capital injection or retained profits, and a positive working capital position.
• No Overdue Filings and Compliance: Accounts and confirmation statements are filed on time with no overdue reports, suggesting good governance and regulatory compliance.
• Growing Workforce: Average employees increased from 1 to 3, indicating some operational growth and potentially improving capacity.

4. Due Diligence Notes:

• Review the nature and source of the increase in fixed assets and equity capital to understand sustainability and funding sources.
• Obtain cash flow statements or management accounts if possible to assess liquidity beyond balance sheet snapshots.
• Investigate the business model and client base under SIC code 96090 ("Other service activities not elsewhere classified") to evaluate market positioning and operational viability.
• Confirm details about directors and management experience to assess governance quality and strategic direction.