STUDIO CEIBA LTD

Executive Summary

Studio Ceiba Ltd is a micro-entity with sound compliance and positive net current assets, indicating low immediate solvency risk. However, a recent decline in net assets and the highly concentrated ownership and control structure warrant further review. Overall, the company appears operationally stable but should be monitored for emerging liquidity or governance risks.

STUDIO CEIBA LTD - Analysis Report

Company Number: SC730684

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

1. Risk Rating: LOW

The company demonstrates a stable financial position with positive net current assets and net assets over the last reported years. There are no overdue filings or signs of regulatory non-compliance, and the company is active without liquidation or administration status.

2. Key Concerns:

• Declining net assets and net current assets from 2024 to 2025: Net assets decreased from £6,282 in 2024 to £3,897 in 2025, and net current assets reduced from £5,417 to £3,748, which may indicate some erosion of financial buffers.
• Very small scale of operations: As a micro-entity with only one employee and minimal fixed assets, the company’s operational scale is limited, potentially exposing it to risks from loss of key personnel or single-client dependence (not verifiable from current data).
• Concentrated control: The sole director and 100% shareholder is also the only person with voting rights and director appointment power, which can present governance risks due to lack of checks and balances.

3. Positive Indicators:

• Consistent compliance: No overdue accounts or confirmation statements and timely filing indicate good regulatory compliance.
• Positive working capital: Net current assets remain positive, suggesting the company can meet short-term liabilities with current assets.
• Stable operational base: The company has been active since incorporation in 2022, with continuity in directorship and no adverse status like liquidation or administration.
• Clear industry focus: SIC codes indicate engagement in specialised design and IT consultancy/software development, sectors with growth potential.

4. Due Diligence Notes:

• Investigate the cause of the decline in net assets and working capital in the most recent year to assess if this is a one-off or trend.
• Review client concentration and revenue sources to understand operational risk given the micro scale.
• Consider obtaining more detailed profit and loss information (not filed publicly) to assess profitability and cash flow.
• Examine director and shareholder background for any related party transactions or potential conflicts given sole control.
• Confirm ongoing business plans and financial forecasts to assess sustainability beyond historical data.