Company Number: 14759813

Analysis Date: 2025-07-19 12:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Studio Dine Ltd is a newly incorporated private limited company with its first financial statements filed for the year ended 31 March 2024. While the company shows a positive net asset position and working capital, its short operating history and limited turnover data present a moderate credit risk. Approval is recommended subject to periodic monitoring of trading performance and cash flow stability as the business matures.

2. Financial Strength:
   The company reports net assets of £22,942 with tangible fixed assets valued at £3,143, primarily computer equipment. Current assets total £60,073, largely driven by cash (£56,914) and modest stock (£2,500). Current liabilities stand at £40,217, including trade creditors, taxation and other creditors. The net current assets (working capital) of £19,856 indicates a positive short-term liquidity buffer. The balance sheet shows no long-term liabilities, which is a positive indicator for financial strength at this stage.

3. Cash Flow Assessment:
   Cash holdings of £56,914 represent a strong liquidity position relative to current liabilities of £40,217, providing good immediate coverage of short-term obligations. The tax and social security creditors of £19,578 require careful attention to ensure timely settlement. The company’s small size (one employee) and relatively low stock and debtor levels reduce working capital strain. The positive net current assets suggest manageable cash flow, but ongoing cash generation from trading will be critical for sustained operations.

4. Monitoring Points:

• Revenue and profit trends in subsequent accounting periods to confirm business viability
• Management of taxation and social security liabilities to avoid cash flow stress
• Development of trade debtor and creditor balances, ensuring no excessive credit risk or supplier pressure
• Continued maintenance of liquidity ratios and working capital levels to support operational needs
• Impact of lease commitments (£700 per annum) on operating cash flow as the business grows