THREE NINE FIVE STUDIOS LIMITED

Executive Summary

Three Nine Five Studios Limited is in an early-stage operational phase with a weak financial position characterized by negative net assets and minimal cash reserves against substantial current liabilities. The company currently lacks the financial strength and cash flow capability to support credit facilities. Credit approval is not recommended at this stage without significant improvement in liquidity and profitability.

THREE NINE FIVE STUDIOS LIMITED - Analysis Report

Company Number: 14387246

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: DECLINE
   Three Nine Five Studios Limited demonstrates significant financial weakness with net liabilities of £33,863 and very low cash reserves (£143) against current liabilities of £34,006. The company is loss-making, reflected in retained earnings of -£33,963. Given its recent incorporation (September 2022) and the absence of substantial assets or working capital, the company currently lacks the financial capacity to service debt or meet commercial obligations reliably. The business also shows limited operational scale (one employee) and no audited financial track record. The directors’ recent appointments and changes suggest potential management transition but no clear evidence of strong financial stewardship mitigating risks.

2. Financial Strength:
   The balance sheet reveals a weak financial position with a shareholders’ deficit and negative net assets. The company holds minimal fixed or current assets aside from negligible cash, and current liabilities exceed current assets dramatically. The capital base is minimal (£100 share capital), providing no buffer against trading losses or unforeseen expenses. The company’s financial trajectory is negative, with no visible profit generation or asset accumulation in its first year of operations.

3. Cash Flow Assessment:
   Liquidity is critically constrained with only £143 in cash against over £34,000 in short-term liabilities. This indicates an inability to meet immediate obligations without external funding. The company’s working capital position is severely negative, reflecting high risk of cash flow stress. No evidence of positive operating cash flow or access to additional financing is apparent from the financials provided.

4. Monitoring Points:

• Cash and working capital levels: Watch for improvement in liquidity and reduction in creditor balances.
• Profitability trends: Monitor future filings for signs of generating sustainable profits or reducing losses.
• Director changes and management actions: New appointments may impact governance and operational execution.
• Filing compliance: Maintain vigilance on timely accounts and confirmation statement submissions.
• Potential capital injections or external financing arrangements to support operations.