Company Number: 14062413

Analysis Date: 2025-07-29 15:42 UTC

Financial Health Assessment: STUDIO BY EVA LIMITED

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1. Financial Health Score: B

Explanation:
STUDIO BY EVA LIMITED displays a solid start-up financial profile with positive net current assets, positive shareholder funds, and minimal liabilities. The company is young (incorporated in 2022) but shows early signs of financial stability. However, the scale of operations is very small, and cash reserves, while improving, remain limited. The score reflects a mostly healthy financial position, but with caution advised due to the company’s infancy and small asset base.

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2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Current Assets	N/A	1,237	Small asset base, includes cash and inventory
Cash & Bank	88	787	Healthy increase in cash, indicating improved liquidity
Current Liabilities	17	32	Very low short-term debts, manageable
Net Current Assets	71	1,205	Positive working capital; the company can cover short-term obligations comfortably
Net Assets (Equity)	1,071	1,205	Positive equity, indicating owner’s funds exceed liabilities
Shareholders’ Funds	1,071	1,205	Reflects retained earnings and initial capital
Employees	1	1	Very small workforce, implying low overheads

Interpretation:
The company’s financial “vital signs” suggest a generally healthy cash flow and balance sheet. The cash position improved significantly over the year, a positive sign akin to a patient’s stable pulse and improving strength. The net current assets indicate the company is not under liquidity stress. Low liabilities reduce financial risk exposure.

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3. Diagnosis

STUDIO BY EVA LIMITED is in the early stages of its business life — like a young adult in good health but still developing. The company demonstrates sound financial fundamentals: positive net assets, low liabilities, and an increasing cash position. These are strong indicators of financial wellness with no immediate symptoms of distress such as debt overload or cash flow problems.

However, the scale of operations is very small, with only one employee and modest assets/inventory. This limited size means the company remains vulnerable to external shocks or changes in revenue streams. The absence of audit requirements and the use of small company accounting standards reflect the company’s micro-sized category, which is typical and not a concern in itself.

The fact that the profit and loss account was not filed publicly limits insight into profitability trends, but the retained earnings (profit and loss reserve) of £205 indicate some profits have been generated since inception.

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4. Recommendations

• Maintain Strong Cash Management: Continue to build cash reserves to create a buffer against unexpected expenses or downturns. Healthy “cash flow” is the lifeblood of the company.
• Monitor Debtor and Inventory Levels: Keep an eye on receivables and inventory turnover to avoid tying up too much capital in stock or unpaid invoices.
• Plan for Growth: Explore opportunities to scale operations carefully to increase revenue and asset base without overextending financially.
• File Complete Accounts: Consider filing the profit and loss account publicly in future filings to enhance transparency and stakeholder confidence.
• Risk Management: Given the small scale, develop contingency plans to mitigate risks from market fluctuations or operational disruptions.
• Regular Financial Reviews: Conduct quarterly financial health checks to detect any early symptoms of financial stress and respond proactively.

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Executive Summary