STUDIO MARK ANDREW LTD

Executive Summary

STUDIO MARK ANDREW LTD demonstrates a solid financial foundation with healthy liquidity and positive net assets in its first year of operation as a micro-entity. While the business is currently stable with no signs of financial stress, careful cash flow management and strategic growth planning are recommended to ensure ongoing financial wellness and resilience. Overall, the company is in good financial health but should prioritize building a track record of profitability and operational expansion.

STUDIO MARK ANDREW LTD - Analysis Report

Company Number: 14858850

Analysis Date: 2025-07-29 20:20 UTC

Financial Health Assessment: STUDIO MARK ANDREW LTD

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1. Financial Health Score: B

Explanation:
As a micro-entity company in its first financial year, STUDIO MARK ANDREW LTD shows a solid foundational position with positive net current assets and net assets. The company’s liquidity and solvency indicators are healthy, reflecting a stable financial "pulse." However, the limited operating history and lack of detailed profitability data prevent a top-tier rating at this stage, meriting a good but cautious "B" grade.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	131,069	Healthy level of short-term resources available
Current Liabilities	57,407	Manageable short-term obligations
Net Current Assets	73,662	Positive working capital indicating liquidity
Net Assets (Equity)	73,662	Business has positive equity, no net debt
Employee Count	1	Small workforce consistent with micro-entity status

• Liquidity (Net Current Assets): The positive working capital of £73,662 suggests the company can comfortably meet its short-term debts—an important sign of financial health akin to a strong heartbeat.
• Solvency (Net Assets): The positive net assets indicate the company’s assets exceed its liabilities, showing it is not overburdened by debt.
• Scale & Operational Scope: With only one employee and micro-entity classification, the company is in its infancy stage, limiting the scale but reducing complexity and overhead risk.

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3. Diagnosis: What the Financial Data Reveals About Business Health

STUDIO MARK ANDREW LTD is financially stable for a young micro-entity. The positive net current assets act like a healthy cash flow system, ensuring the company can cover immediate financial obligations. The absence of liabilities beyond current ones and positive shareholder funds reflect no signs of financial distress or hidden burdens.

The business’s narrow scale (sole director and employee) suggests a lean operation with a focus on specialized design activities (SIC 74100). This specialization can be a strength if managed carefully, but also presents vulnerability to market fluctuations or client dependency risks.

No audit requirement indicates simplicity in financial reporting but also less external validation of financial robustness.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Develop Cash Flow Forecasting: Though the current liquidity is strong, ongoing cash flow management is crucial to avoid future "symptoms of distress." Regular monitoring and projections will prepare the business for any seasonal or unexpected downturns.
• Build Profitability Track Record: In coming years, focus on increasing revenue and controlling costs to build retained earnings and strengthen equity.
• Diversify Client Base: To avoid over-reliance on few clients, diversify contracts and projects to strengthen revenue stability.
• Consider Formal Financial Controls: As the business grows, implementing formal budgeting, bookkeeping, and possibly external audit/review may enhance transparency and stakeholder confidence.
• Plan for Growth: Evaluate opportunities to expand workforce or service offerings prudently, keeping operating costs aligned with revenue growth.
• Maintain Compliance: Keep timely filings of accounts and confirmation statements to avoid penalties and maintain good standing.

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