Company Number: 13280305

Analysis Date: 2025-07-29 19:39 UTC

1. Credit Opinion: APPROVE
   Makin Studios Ltd demonstrates a solid financial position for a micro-entity within a specialised design industry. The company has shown consistent growth in net assets and working capital over the last four years, indicating sound financial management and an ability to meet financial obligations. No overdue filings or director conduct issues are evident, supporting creditworthiness for standard lending or credit facilities.

2. Financial Strength:
   The company's balance sheet reflects improving financial strength: net assets increased from £190 in 2021 to £84,703 in 2025. Fixed assets are minimal (£337 in 2025), which is typical for a design studio reliant on intellectual property and services rather than physical capital. The strong equity base and positive retained earnings suggest stability and no reliance on external debt. Overall, the balance sheet indicates a well-capitalised micro-business with low financial risk.

3. Cash Flow Assessment:
   Net current assets (working capital) have grown substantially to £84,798 in 2025, with current assets of £97,771 comfortably covering current liabilities of £12,973. This healthy liquidity position implies the company can meet short-term obligations and operate without cash flow stress. The lack of significant liabilities and the positive net asset position underpin the company’s ability to service debt and manage operational expenses effectively.

4. Monitoring Points:

• Maintain watch on liquidity ratios and current liabilities to ensure ongoing comfortable coverage.
• Monitor revenue growth and profit margins once profit and loss details become available to confirm continued operational success.
• Review any changes in director or shareholder structure given sole control by one individual, which concentrates operational and financial risk.
• Keep an eye on industry developments in specialised design activities that may impact demand and pricing power.