ROBERT HUGHES STUDIO LIMITED

Executive Summary

ROBERT HUGHES STUDIO LIMITED is a recently incorporated micro private company exhibiting positive net asset and working capital growth, with no regulatory filing concerns to date. While its small scale and limited financial history warrant cautious monitoring, the company currently demonstrates low financial risk and operational stability. Further due diligence should focus on profitability, cash flow sustainability, and governance given the concentrated ownership structure.

ROBERT HUGHES STUDIO LIMITED - Analysis Report

Company Number: 14417468

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset base relative to its size and no overdue filings or indications of financial distress. The micro-entity status limits financial complexity and reporting requirements but the positive net current assets and shareholder funds growth year-on-year suggest stable financial footing.

2. Key Concerns:

• Limited Financial History: Incorporated in late 2022, the company has only two full years of financial data, limiting the ability to assess long-term operational performance and cyclicality.
• Small Scale and Micro Category: The company’s scale and asset base are modest, which may limit operational resilience against market downturns or unexpected cash flow pressures.
• Concentration of Control: Both directors also hold significant control (25-50% shares and voting rights), which could present governance risks if conflicts arise without independent oversight.

3. Positive Indicators:

• Strong Working Capital Position: Net current assets improved from £14.3k to £28.3k, indicating good short-term liquidity to meet obligations.
• Positive Net Assets Growth: Shareholders’ funds increased from £17.1k to £27.5k, reflecting retained earnings or capital injections, signifying business growth or profitability.
• Compliance and Timely Filings: No overdue accounts or confirmation statements suggest management diligence and regulatory compliance.
• Stable Directorship: Directors have been in place since incorporation with no adverse records noted, supporting operational continuity.

4. Due Diligence Notes:

• Profitability and Cash Flow Details: Investigate the Profit & Loss performance and cash flow statements (not filed publicly due to micro-entity exemption) to confirm underlying business sustainability and cash generation.
• Revenue and Client Base: Assess turnover figures and customer diversification to evaluate revenue stability and dependency risks.
• Potential Related Party Transactions: Given the overlap between directors and PSCs, examine any intercompany or related party transactions that might affect financial integrity.
• Future Business Plans and Industry Risks: Understand strategic outlook, especially as the company operates in ‘Other building completion and finishing’ which can be sensitive to economic cycles and supply chain issues.