Company Number: 12482661

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: MEDIUM
   Justification: MIX STUDIO LTD is a micro-entity with modest net assets (£988) and limited fixed assets (£3,800). The net current assets have significantly declined from £1,914 in 2023 to £226 in 2024, indicating tightening liquidity. Additionally, the company carries long-term liabilities (£3,038) which are substantial relative to its net assets, signaling potential solvency concerns if cash flow deteriorates.

2. Key Concerns:

• Declining Net Current Assets: A steep drop from £1,914 to £226 within one year suggests worsening short-term liquidity and potential cash flow strains to meet immediate obligations.
• Long-term Creditors: The company has significant creditors due after one year (£3,038), which is over three times its share capital and indicates reliance on external financing that may pressure solvency if not managed prudently.
• Low Equity Base: Net assets and shareholders’ funds are under £1,000, which is minimal and leaves little buffer against operational losses or unforeseen expenses.

3. Positive Indicators:

• Timely Filings: The company is current with its accounts and confirmation statement filings, reflecting good compliance and governance practices.
• Stable Fixed Assets: Fixed assets remain constant at £3,800, indicating no asset write-downs or impairments to date.
• Sole Director Continuity: The single director, Mrs Gizem Bulbul, has been in place since incorporation, suggesting stable management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules, interest obligations, and any associated covenants or risks.
• Review cash flow statements and any recent management accounts to evaluate liquidity trends and working capital management beyond the balance sheet snapshot.
• Confirm the company's business model sustainability given the low equity and micro-entity scale, including client concentration and revenue stability.
• Explore any related party transactions or contingent liabilities not evident in the micro-entity accounts due to limited disclosure.