SHUTTERHOUSE STUDIOS LTD

Risk Rating: MEDIUM The company demonstrates consistent solvency and adequate liquidity; however, the significant year-on-year decline in net assets and working capital, combined with key-person dependency and the limited transparency inherent to micro-entity filings, elevates the risk profile for institutional investment consideration.

Key Concerns: * Declining Asset Base and Working Capital: Net assets fell by approximately 34% from £29,864 in 2024 to £19,665 in 2025. Similarly, net current assets (working capital) dropped from £18,908 to £9,259. Without a profit and loss account, it is unclear if this reduction is driven by operational losses or capital extraction, but the rapid decline reduces the company's financial buffer. * Key-Person Dependency and Concentration Risk: Ms. Ana Maria Sterian serves as the sole director and holds more than 75% of the shares. The operational stability of the business is entirely tied to a single individual, presenting significant continuity and decision-making concentration risks. * Limited Financial Transparency: As a micro-entity, the company files filleted accounts which omit the profit and loss statement, cash flow, and detailed creditor/debtor breakdowns. This makes it impossible to assess operational profitability, cash generation, or the exact nature of the current liabilities from the public record.

Positive Indicators: * Solid Solvency Position: Despite the recent decline, the company remains solvent with £19,665 in net assets and no reported long-term liabilities. * Adequate Short-Term Liquidity: Current assets (£17,044) comfortably cover current liabilities (£7,785), yielding a healthy current ratio of approximately 2.19x. This indicates the company can meet its short-term obligations without liquidity stress. * Regulatory Compliance: The company is actively registered, its accounts and confirmation statements are up to date, and there are no overdue filings or recorded disqualifications against the director.

Due Diligence Notes: * Driver of Equity Decline: Investigate whether the £10,199 drop in net assets during the 2025 fiscal year is attributable to accumulated trading losses or director dividends/drawings. * Composition of Current Assets: Determine the split between cash and trade debtors within the £17,044 current assets figure. A high proportion of debtors could indicate collection issues, whereas cash provides greater immediate stability. * Nature of Fixed Assets: The company holds £10,406 in fixed assets. Given the "Studios" naming convention and SIC code, clarify if these are specialized equipment or intellectual property, and assess their realizable value in a distress scenario. * Business Model Verification: The SIC code (96090 - Other service activities n.e.c.) is non-specific. Clarify the exact nature of the services provided to assess market viability and revenue sustainability.