TEHRAN TEAM STUDIO LTD

Executive Summary

Tehran Team Studio Ltd is a start-up in the advertising sector with a weak financial position, negative equity, and minimal liquidity. The company currently relies on director loans and shows no trading history or cash flow generation, presenting significant credit risk. Approval for credit facilities is not recommended until the company demonstrates improved financial health and operational performance.

TEHRAN TEAM STUDIO LTD - Analysis Report

Company Number: 15355207

Analysis Date: 2025-07-29 18:56 UTC

1. Credit Opinion: DECLINE
   Tehran Team Studio Ltd is a newly incorporated company (December 2023) with its first accounts filed for the year ending December 2024. The financial position shows negative net assets (£-2,521) and net current liabilities (£-2,521), indicating the company is currently insolvent on a balance sheet basis. Cash on hand is minimal (£10), and current liabilities of £2,531 include director loans of £1,961, which may indicate reliance on director funding to sustain operations. There is no trading history or evidence of revenue generation or profitability. Given the significant negative equity, lack of operating cash flow, and sole director control, the company presents a high credit risk with no demonstrated ability to service debt or grow financially at this stage.

2. Financial Strength:
   The balance sheet reveals a weak financial structure. Net liabilities and shareholders' funds are negative, driven by accumulated losses (£2,621 in P&L reserve). Current liabilities exceed current assets, resulting in negative working capital. The company holds no fixed assets and minimal cash reserves. The director loan indicates reliance on internal funding rather than external creditworthiness. Overall, the company lacks capital adequacy and financial resilience.

3. Cash Flow Assessment:
   Liquidity is critically low with only £10 cash available against £2,531 of current liabilities. Negative net current assets indicate working capital deficiency, raising concerns over the company’s ability to meet short-term obligations. The absence of employees and no evidence of operational income suggest limited cash inflows. The company is dependent on director loans for funding, which may not be sustainable or formalized as long-term capital.

4. Monitoring Points:

• Future trading performance and revenue generation to assess operational viability.
• Changes in net current assets and net liabilities to track improvements in working capital and equity.
• Director funding levels and any formalization of loans or equity injections.
• Timely filing of next accounts and confirmation statements.
• Any changes in management or control that may affect financial stewardship.
• Evidence of securing external finance or credit lines to support liquidity.