REISE STUDIO LTD

Executive Summary

Reise Studio Ltd, a micro-entity design company incorporated in 2022, demonstrates promising early financial stability with increasing net assets and positive working capital. While trading history is limited, the company’s balance sheet and liquidity position support a cautious credit approval. Continued monitoring of cash flow and profitability growth is recommended to mitigate risks associated with a young, small enterprise.

REISE STUDIO LTD - Analysis Report

Company Number: 14071167

Analysis Date: 2025-07-29 19:51 UTC

Credit Opinion:
APPROVE with caution. Reise Studio Ltd is a newly incorporated micro-entity (since April 2022) showing solid growth in net assets and working capital in its first two years. The company appears financially stable with positive net assets and net current assets, indicating the ability to meet short-term liabilities. However, limited trading history and a small scale of operation (2 employees) mean credit limits should be conservative initially, with review after further trading history.

Financial Strength:
The balance sheet shows improvement year-on-year. Fixed assets increased modestly from £2,063 to £3,388 and current assets rose significantly from £524 to £19,372, mainly cash or receivables. Current liabilities increased from £34 to £14,673 but remain well covered by current assets, resulting in net current assets of £4,699. Provisions for liabilities decreased from £2,224 to £1,383, which is positive. Overall net assets increased from £329 to £6,704, reflecting retained earnings and capital growth. The capital structure is very modest (£2 share capital) with all equity essentially accumulated reserves.

Cash Flow Assessment:
The large increase in current assets relative to liabilities suggests improved liquidity and working capital management. With net current assets positive and growing, the company should have sufficient cash flow to service short-term debts and operating expenses. However, as a micro-entity with limited financial disclosures, detailed cash flow from operations is not visible. Monitoring debtor collection and creditor terms will be important to ensure ongoing liquidity.

Monitoring Points:

• Continued growth in turnover and profitability to build more robust equity base.
• Maintain net current assets at a level sufficient to cover short-term liabilities comfortably.
• Monitor any increase in provisions or contingent liabilities that could reduce net assets.
• Watch for timely filing of accounts and confirmation statements (currently up to date).
• Track director and shareholder stability; currently 100% owned and controlled by Miss Lucie Claire Barnes.
• Assess impact of any changes in market conditions on specialised design activities sector.