Company Number: 14738088

Analysis Date: 2025-07-29 13:31 UTC

1. Credit Opinion: DECLINE
   Malachite Studio Ltd is a very recently incorporated micro-entity with minimal financial substance. The company ceased trading at the end of the latest financial year (28/02/2025), which significantly impairs its ability to generate cash flow and repay any credit extended. The balance sheet shows negligible assets (£325 current assets) and minimal net assets (£320), indicating very limited financial strength. The absence of fixed assets and almost no working capital suggest the company is not operationally resilient or capable of servicing debt. The sole director and controlling shareholder has advanced a trivial amount (£5) to the company, further underscoring the limited scale and financial backing. Given the cessation of trading and weak financial profile, extending credit would carry high risk.

2. Financial Strength:
   The company's financial position is weak. Net current assets dropped sharply from £1,699 in the prior period to only £320, reflecting a significant drawdown of cash or receivables. There are no fixed assets, so collateral value is negligible. Shareholders’ funds have diminished substantially, indicating erosion of equity. The micro-entity nature and lack of operating history beyond one year limit the ability to assess trends. The company’s cessation of trading further undermines financial viability.

3. Cash Flow Assessment:
   Current assets are minimal (£325), predominantly cash or equivalents, with current liabilities close to zero (£5), resulting in a small positive working capital. However, the cessation of trading means no incoming cash flows are expected. The company has no accruals or deferred income, and no external financial commitments. The absence of operating cash inflows combined with minimal cash reserves indicates inability to meet ongoing liabilities or service debt.

4. Monitoring Points:

• Business activity status: monitor for potential restart of trading or dissolution.
• Cash position and working capital changes if trading resumes.
• Director advances or external funding injections to shore up liquidity.
• Filing of subsequent accounts and confirmation statements to ensure regulatory compliance.
• Any changes in ownership or control that may bring new financial support.