STUDIO ELLAHI LTD

Executive Summary

Studio Ellahi Ltd shows signs of financial distress with negative net assets and current liabilities exceeding current assets, posing significant solvency and liquidity risks. While the company is compliant with statutory filings and under clear ownership, the limited financial data and small cash balance highlight the need for further due diligence on operational viability and management’s plans to address insolvency. Investors should approach with caution and seek additional financial disclosures before proceeding.

STUDIO ELLAHI LTD - Analysis Report

Company Number: 14439519

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to negative net current assets and shareholders’ funds, indicating insolvency on a balance sheet basis at the last reporting date.

2. Key Concerns:

• Negative Net Current Assets (-£1,550): Current liabilities exceed current assets, suggesting potential liquidity problems and short-term funding issues.
• Negative Net Assets and Shareholders’ Funds (-£1,550): The company’s total liabilities exceed its assets, indicating it is technically insolvent at the reported date.
• Very Limited Cash Balance (£776): Cash on hand is minimal relative to liabilities, raising concerns about the company’s ability to meet immediate obligations without additional funding.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements have been filed on time, demonstrating compliance with statutory requirements.
• Active Status and Recent Incorporation: The company is active and relatively newly incorporated (October 2022), which may suggest early-stage development with potential for growth.
• Single Director and 100% Ownership: Clear control structure under Mrs. Sara Ellahi, facilitating decision-making and potentially easier access to shareholder funding if needed.

4. Due Diligence Notes:

• Review Profit and Loss Information: The abridged accounts omit the income statement; investigating the company’s revenue, expenses, and profitability is critical to assess operational sustainability.
• Cash Flow Analysis: Determine the company’s cash inflows and outflows, including any shareholder loans or external financing arrangements supporting liquidity.
• Examine Plans for Addressing Insolvency: Assess management’s strategy to restore positive net assets and working capital, including capital injections or cost controls.
• Director Background and Related Party Transactions: Verify the director’s financial capacity to support the company and check for any related party transactions that may impact financial stability.
• Impact of Name Change: Understand the rationale behind the recent name change from SEI Interiors Ltd to Studio Ellahi Ltd, which may indicate restructuring or rebranding efforts.