STUDIO GREENWELL LTD

Executive Summary

Studio Greenwell Ltd is a small private company with ongoing liquidity and solvency challenges evidenced by negative net current assets, minimal net equity, and depletion of cash reserves as of August 2024. While regulatory filings are up to date and governance is straightforward, the financial position raises significant concerns about short-term financial stability and operational sustainability. Further analysis of cash flows and profitability is essential to fully assess investment risk.

STUDIO GREENWELL LTD - Analysis Report

Company Number: 13555873

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: HIGH

Justification: The company shows persistent net current liabilities, declining net assets, and a lack of cash reserves as of the latest financial year. The small scale of operations and minimal equity buffer indicate a high solvency and liquidity risk.

2. Key Concerns:

• Negative net current assets of £4,206 at 31 August 2024, worsening from a small negative position the previous year, indicating liquidity pressures.
• Extremely low net assets of £159 as of 2024 year-end, down from £572 the prior year, suggesting erosion of equity and a weak capital base.
• Absence of cash on hand at 2024 year-end (cash reduced from £6,299 in 2023 to nil), raising concerns about the company’s ability to meet short-term obligations.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory adherence.
• Ownership and control are consolidated with a single director and 75-100% shareholder, simplifying governance and decision-making.
• Tangible assets held (£4,365) provide some fixed asset backing, which could be leveraged if necessary.

4. Due Diligence Notes:

• Investigate the nature and timing of creditors and current liabilities to understand liquidity constraints and payment terms.
• Review cash flow statements and bank reconciliations for the latest periods to assess actual cash movements and working capital management.
• Assess revenue streams and profitability trends, as profit and loss details are not filed, limiting insight into operational sustainability.
• Clarify the reason for the sharp reduction in cash from prior year and whether the company has access to external financing or capital injections.
• Confirm absence of any director disqualifications or regulatory issues beyond publicly available data.