Company Number: 13124377

Analysis Date: 2025-07-20 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Spacebound Studios Ltd is a very small private company with minimal financial scale and a short operating history (incorporated in 2021). The latest accounts show modest net current assets of £944 and positive shareholders’ funds, reflecting a small but positive net asset position. The company’s cash position (£3,003) slightly exceeds current liabilities (£2,059), indicating a basic ability to meet short-term obligations. However, the absence of a profit and loss account and limited financial detail restrict insight into operating profitability and cash generation. The company operates in a niche sector (interactive leisure and entertainment software), which can be volatile. Given these factors, credit exposure should be limited and monitored closely. Approval would be conditional on obtaining more detailed management accounts and assurances on ongoing cash flow and revenue visibility.

2. Financial Strength:
   The balance sheet shows a very small equity base (£944) and low absolute asset values. Net current assets are positive but minimal, indicating limited working capital buffer. Fixed assets are apparently negligible or zero. The company’s capital is nominal (£2 share capital), typical for a micro entity. No long-term liabilities or debts are reported, which reduces financial risk. Overall, the financial strength is weak but not negative; the company is solvent but highly dependent on maintaining cash inflows to sustain operations.

3. Cash Flow Assessment:
   Cash at bank is £3,003 with current liabilities at £2,059, yielding a modest current ratio of approximately 1.46. The absence of debtors suggests limited receivables or very prompt payments from customers. The company employs only two staff (including directors), implying low overheads. However, the lack of historical profitability data and no disclosed cash flow statements means cash generation capacity is uncertain. Cash reserves are low and could be quickly eroded if revenues do not materialize or if unexpected expenses arise.

4. Monitoring Points:

• Obtain interim or management accounts to assess current trading performance and cash flow trends.
• Monitor cash balances and working capital regularly to pre-empt liquidity issues.
• Review directors’ plans for revenue growth and cost control given the early stage of the business.
• Watch for any overdue filings or delays in statutory payments.
• Confirm no adverse changes in shareholder or director control or financial commitments.