Company Number: 13466937

Analysis Date: 2025-07-19 12:44 UTC

1. Risk Rating: HIGH
   Studio Ganymede Limited demonstrates significant solvency and liquidity risks, as evidenced by persistent and increasing net liabilities and negative net current assets over multiple years. The company’s financial statements reveal an ongoing erosion of equity with no signs of recovery, which poses a material risk to creditors and investors.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities stood at £16,523 as of June 2024, with a worsening trend from prior years (£17,455 in 2023 and 2022). This indicates cumulative losses and insufficient capital to meet obligations.
• Working Capital Deficit: Current liabilities (£24,579) significantly exceed current assets (£4,723), resulting in a negative net working capital of £19,856. This suggests the company may struggle to meet short-term obligations as they fall due.
• Small Scale and Limited Financial Transparency: As a micro-entity with only one employee (the director), limited operational scale and absence of an audit reduce the robustness of financial oversight. This heightens operational and governance risk.

3. Positive Indicators:

• Timely Filing Compliance: The company is current with its accounts and confirmation statement filings, indicating regulatory compliance and no immediate governance red flags in document submission.
• Active Website and Market Presence: The existence of an active website suggests some level of operational activity and marketing, which may support future revenue generation.
• Sole Director with Full Control: The director owns 75-100% of shares and voting rights, which can streamline decision-making and responsiveness to financial challenges.

4. Due Diligence Notes:

• Cash Flow and Revenue Streams: Investigate the company’s revenue generation and cash inflows to assess if operational improvements or capital injections are planned to address working capital deficits.
• Director’s Financial Support: Determine if the sole director has provided or intends to provide further financial support to offset losses or fund operations.
• Business Model Viability: Review the company’s business plan and client contracts in the specialised design activities sector to evaluate sustainability and potential for profitability.
• Potential Related Party Transactions: Examine transactions between the director and company for any risk of financial exposure or conflicts of interest.
• Creditors and Payment Terms: Assess relationships with creditors, including any overdue payments or restructuring arrangements that might impact solvency.