STUDIO LATTICE LTD

Executive Summary

STUDIO LATTICE LTD demonstrates solid financial health for a micro-sized company in its early stage, with positive cash flow and net current assets indicating good liquidity and solvency. However, limited financial disclosure and scale restrict a full profitability assessment. Strengthening financial transparency and cautious growth planning are recommended to sustain and improve financial wellness.

STUDIO LATTICE LTD - Analysis Report

Company Number: 14469709

Analysis Date: 2025-07-29 14:52 UTC

Financial Health Assessment for STUDIO LATTICE LTD

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1. Financial Health Score: B

Explanation:
STUDIO LATTICE LTD shows a generally healthy financial position for a newly incorporated company (just over 1 year old), with positive net current assets and shareholders’ funds. The presence of cash reserves exceeding current liabilities indicates sound liquidity, an essential sign of financial wellness. However, limited financial history, small scale, and absence of profit and loss disclosure restrain a higher grade. Overall, it’s a promising start with room to build stronger financial robustness.

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2. Key Vital Signs

Vital Sign	Figure	Interpretation
Cash at bank	£6,511	A healthy “cash pulse” for a micro business, providing short-term operational flexibility.
Current Liabilities	£3,237	Low short-term debts relative to cash, indicating manageable obligations.
Net Current Assets	£3,274	Positive working capital (“financial breathing room”) showing the company can cover immediate debts comfortably.
Shareholders’ Funds	£3,274	Equity base reflects initial capital and retained earnings; supports solvency and financial stability.
Company Age	~1 year	Early life stage; financial data is limited, so caution is required when projecting trends.
Employee Count	1	Micro business scale; lower overhead but also limited capacity for rapid growth.
Turnover & Profit Data	Not disclosed	Absence of detailed profit and loss data is a “symptom” limiting full diagnosis of profitability and margins.

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3. Diagnosis

• Liquidity & Solvency: The company exhibits strong liquidity with cash exceeding current liabilities, a vital sign of a healthy cash flow system. Positive net current assets and shareholders’ funds suggest no immediate financial distress or solvency concerns.
• Scale & Growth Potential: Being a micro-sized company, it is operating with minimal resources and staff, implying limited market reach and possibly cautious growth. The director’s professional background (architect) aligns with the business nature, which is classified under “Other service activities not elsewhere classified,” likely bespoke or niche services.
• Financial Reporting: The choice to file abridged accounts and omit profit and loss statements means less transparency on profitability, revenue growth, or expense trends—key “symptoms” needed for a full financial health check. This is common for small startups but warrants attention as the company matures.
• Risk Factors: With a single director/owner controlling 75-100% ownership and voting rights, governance is concentrated, which can be efficient but also a potential risk if not balanced with external advice or oversight. Additionally, lack of audit and limited financial data means hidden risks could exist but are not visible yet.
• Overall Condition: The company can be likened to a patient in early recovery post-incorporation — stable vital signs, no obvious distress, but requiring ongoing monitoring and strengthening to ensure sustainable growth and profitability.

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4. Recommendations

1. Enhance Financial Transparency:
   As the business grows, consider expanding financial disclosures—particularly profit and loss accounts—to better diagnose revenue streams, profitability, and cost management. This will provide investors, lenders, and stakeholders clearer insight into operational health.

2. Build Cash Reserves and Working Capital:
   Maintain or increase cash reserves to buffer against unforeseen expenses or delayed payments from clients. Healthy cash flow is the lifeblood of small businesses, ensuring operational continuity.

3. Consider Financial Planning and Forecasting:
   Develop formal budgets and cash flow forecasts to anticipate future funding needs and avoid liquidity “symptoms” such as cash shortages or excessive short-term borrowing.

4. Governance and Risk Management:
   While single ownership is common at this stage, exploring advisory boards or external consultants can provide valuable oversight and reduce “single point of failure” risks.

5. Monitor Growth and Scaling Carefully:
   With only one employee and limited assets, growth should be managed cautiously. Invest in marketing, client acquisition, and operational capacity in line with cash flow and demand to avoid overextension.

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