STUDIO RUUM LTD

Executive Summary

STUDIO RUUM LTD is a small, privately controlled design and architectural company with a stable regulatory record and modest net assets. While it currently meets short-term obligations, its limited liquidity and capitalization present moderate solvency risks. Further due diligence into profitability, client diversity, and related party transactions is advisable to fully assess financial stability and operational sustainability.

STUDIO RUUM LTD - Analysis Report

Company Number: 13454488

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net assets and positive net current assets, indicating it can currently meet short-term obligations. However, the low absolute cash balances and small scale of operations, combined with minimal equity, suggest vulnerability to cash flow pressures or unexpected liabilities.

2. Key Concerns:

• Low liquidity buffer: Cash at bank is only £2,513 as of March 2024, a marginal increase from prior years, which may be insufficient to cover any sudden expenses or downturns.
• Small scale and limited capitalization: Shareholders’ funds of £231 reflect very limited equity, restricting the company’s capacity to absorb losses or invest in growth.
• Concentration of control and responsibilities: Single director and sole shareholder structure (Ms. Merve Iscan) concentrates operational and governance risk, with limited oversight or management depth.

3. Positive Indicators:

• Compliance and timely filings: No overdue accounts or confirmation statements, evidencing good regulatory compliance and governance discipline.
• Modest but improving net current assets: Net current assets increased from £176 in 2023 to £231 in 2024, suggesting a slight improvement in working capital management.
• Consistent operational activity: The company, classified under specialised design and architectural activities, shows ongoing business presence since incorporation in 2021.

4. Due Diligence Notes:

• Review detailed profit and loss data: The filleted accounts do not provide P&L figures—obtaining these would clarify profitability and operational cash flow quality.
• Examine director’s account balances: The related party balances (debtor and creditor) should be scrutinized for sustainability and potential liquidity impact.
• Evaluate client concentration and revenue streams: Given the company’s SIC codes and small size, understanding dependence on key clients or contracts is critical to assess continuity risks.
• Confirm absence of contingent liabilities: Check for any off-balance sheet obligations or potential tax liabilities given the increase in taxation and social security creditors to £2,585.