STUDIO RACKOWE LIMITED

Executive Summary

STUDIO RACKOWE LIMITED shows a strong financial foundation with healthy liquidity and positive net assets, indicative of a stable start for a micro-sized company. While limited operational data restricts full assessment, current metrics reveal no immediate distress symptoms, positioning the company well for sustainable growth. Continued focus on cash flow management, profitability tracking, and governance will support ongoing financial wellness.

STUDIO RACKOWE LIMITED - Analysis Report

Company Number: 14499552

Analysis Date: 2025-07-20 15:57 UTC

Financial Health Assessment Report for STUDIO RACKOWE LIMITED

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1. Financial Health Score: B

Explanation:
STUDIO RACKOWE LIMITED demonstrates a solid financial position for a newly incorporated micro-entity. The company shows strong net current assets relative to liabilities, indicating good short-term liquidity and a healthy balance sheet. However, being a very young company (incorporated late 2022) and with limited financial history, the assessment carries some caution. The absence of turnover, profit, or cash flow data constrains a full evaluation, but the available metrics suggest a stable start.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	78,520	Healthy cash or near-cash position, positive liquidity
Current Liabilities	18,426	Manageable short-term debts, low relative to assets
Net Current Assets (Working Capital)	60,094	Strong working capital, indicating ability to cover short-term obligations
Net Assets (Shareholders’ Funds)	59,719	Positive equity base, showing net worth and financial cushion
Number of Employees	1	Micro-sized operation, low fixed costs
Filing Status	Up to date	Compliance with statutory requirements, no regulatory distress

Interpretation:
The "vital signs" of this company indicate a "healthy cash flow" environment with more than three times coverage of current liabilities by current assets. The positive net assets confirm that the company is not over-leveraged and has a good financial "pulse." The small scale (one employee) means fixed overheads are low, reducing financial strain.

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3. Diagnosis

Underlying Financial Health:
The company is in an early stage of its lifecycle but shows no immediate "symptoms of distress." The strong working capital ratio suggests the company can meet short-term obligations without liquidity stress. The positive net assets and shareholder funds represent a stable financial "immune system," allowing the company to absorb shocks if needed.

Risks and Observations:

• Lack of detailed profit & loss data or cash flow statements limits insight into operational efficiency and profitability.
• Being a micro-entity, the company benefits from simplified reporting which restricts detailed financial transparency.
• The business operates in niche sectors (Artistic creation and other service activities), which may have fluctuating revenue streams.
• Sole control by one individual (Mr. Nathaniel James Rackowe) may streamline decision-making but could also concentrate risk.

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4. Recommendations

To enhance the financial wellness and prepare for sustainable growth, consider the following:

• Cash Flow Monitoring: Maintain and regularly review cash flow forecasts to ensure liquidity remains robust as the company scales.
• Revenue Tracking: Develop detailed tracking of income and expenses to move beyond balance sheet strength into profitability analysis.
• Contingency Planning: Build a financial buffer by retaining earnings or securing lines of credit to manage unexpected costs or downturns.
• Governance and Controls: Given sole directorship and ownership, implement basic internal controls and possibly seek advisory support to mitigate concentration risk.
• Growth Investment: With positive net assets, consider strategic investment in marketing or product development to build revenue streams.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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