STYLED HOME STUDIOS LTD

Executive Summary

Styled Home Studios Ltd demonstrates improving liquidity and shareholder support but carries moderate solvency risk due to significant long-term liabilities and accumulated losses. Operational sustainability requires further validation given its small scale and absence of employees. Investors should conduct further due diligence on creditor terms and cash flow stability before proceeding.

STYLED HOME STUDIOS LTD - Analysis Report

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.