STUDIOBEAM PRODUCTIONS LTD

Executive Summary

STUDIOBEAM PRODUCTIONS LTD demonstrates a stable financial position with positive net assets and healthy cash reserves, typical of a micro-business in early growth stages. While no financial distress symptoms are present, limited turnover and rising tax liabilities suggest a need for cautious management and strategic growth initiatives. Focus on revenue enhancement, tax management, and funding diversification will be key to sustaining and improving financial wellness.

STUDIOBEAM PRODUCTIONS LTD - Analysis Report

Company Number: 13057062

Analysis Date: 2025-07-20 12:31 UTC

Financial Health Assessment for STUDIOBEAM PRODUCTIONS LTD (as of 31 January 2024)

---

1. Financial Health Score: B

Explanation:
The company shows stable financial footing with positive net assets and a healthy buffer of current assets over current liabilities. However, limited turnover and a small employee base reflect a micro-business scale with potential growth constraints. The absence of turnover disclosure and limited debt raise questions about operational scale and revenue generation, preventing a top-grade score.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Net Assets	£36,667	Positive equity indicates solvency and retained earnings.
Share Capital	£100	Minimal capital; typical for small private companies.
Tangible Fixed Assets	£22,302	Significant investment in fixed assets for a micro firm.
Current Assets	£30,197	Adequate liquid assets to cover short-term obligations.
Current Liabilities	£15,832	Manageable short-term debts but increased vs prior year.
Net Current Assets (Working Capital)	£14,365	Positive working capital — a sign of operational liquidity.
Cash at Bank	£28,259	Healthy cash reserves support smooth operations.
Debtors	£1,938	Relatively low, indicating limited outstanding customer payments.
Creditors	£15,832	Includes tax and other payables; increased from prior year.
Employees	1 (including director)	Micro-size operation, low overheads, limited scale.

---

3. Diagnosis

STUDIOBEAM PRODUCTIONS LTD presents as a micro private limited company with a stable but modest financial profile. The company has grown its tangible fixed assets substantially from £4.5K to £22.3K over one year, indicating investment in property or equipment, which could support future revenue generation. The positive net assets and working capital (net current assets) suggest no immediate liquidity distress — akin to a patient with a strong heart rate and blood pressure but low overall stamina.

However, the absence of disclosed turnover figures and the low number of employees (one) may point to limited business activity or early-stage development. The increase in current liabilities, particularly taxation and social security payables nearly doubling from £5.5K to £11.3K, signals growing operational costs or tax obligations, which must be managed carefully.

The financial statements are unaudited but prepared under the UK small companies regime, which is typical for micro-businesses. The director's loan account shows active management of funding, but reliance on director advances may indicate external funding constraints.

In terms of symptoms, the company shows no signs of financial distress — no overdrafts, no negative equity, and positive cash flow appearance. The business appears "healthy" but needs to build operational scale and revenue to enhance resilience.

---

4. Recommendations

• Enhance Revenue Reporting & Growth: Establish clear turnover targets and transparent revenue reporting to provide stakeholders with confidence about business activity and growth.
• Monitor and Manage Tax Liabilities: The rise in taxation and social security creditors should be carefully managed to avoid cash strain or penalties.
• Leverage Asset Investments: Ensure the tangible asset investments are optimally utilized to generate increased revenue streams.
• Build Working Capital Cushion: Maintain or increase the positive working capital position to safeguard against unforeseen expenses.
• Consider Audit or Review: Voluntary audit or financial review could improve transparency and trust with potential investors or lenders.
• Explore Funding Diversification: Reduce reliance on director loans by exploring external funding options or grants to support expansion.
• Operational Scaling: Consider strategies for hiring or outsourcing to increase business capacity beyond the current single employee setup.
• Regular Financial Monitoring: Implement monthly cash flow and budget reviews to catch any early warning signs of financial strain.

---