Company Number: 13571219

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: MEDIUM
   Styled Home Studios Ltd shows improving net assets and positive net current assets, indicating some ability to meet short-term liabilities. However, the substantial long-term creditor balance and historical losses create moderate solvency concerns. The company is young, with limited financial history, and no audit performed, increasing uncertainty.

2. Key Concerns:

• Long-term liabilities of £24,018 significantly outweigh net assets, potentially constraining financial flexibility.
• Accumulated losses reflected in the P&L reserve (-£8,832) despite recent improvements suggest operational profitability is still fragile.
• Absence of employees (zero reported) may indicate reliance on contractors or limited operational scale, raising questions on business sustainability and capacity for growth.

3. Positive Indicators:

• Net current assets increased from £20,459 in 2023 to £28,557 in 2024, showing improved liquidity and ability to cover short-term debts.
• Cash balance has grown to £41,921, further supporting short-term liquidity.
• Recent share capital injections with premiums suggest shareholder support and willingness to fund the business.
• Directors affirm going concern status based on forecasts, signaling confidence in ongoing operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £24,018 long-term creditors to assess repayment risk and impact on solvency.
• Review underlying cash flow statements and management accounts to confirm operational cash generation and sustainability beyond year-end snapshots.
• Understand business model and client base for revenue visibility, given no reported employees and reliance likely on external resources or subcontractors.
• Confirm compliance with filing deadlines and governance; no overdue filings noted, and directors appear current and compliant.
• Evaluate the impact of share capital increases on shareholder structure and potential dilution.