Company Number: 13836591

Analysis Date: 2025-07-20 11:34 UTC

1. Credit Opinion: DECLINE
   TYRO STUDIOS LTD presents significant financial weakness with persistent negative net assets and working capital deficits. Despite being a micro-entity with small scale operations, the company’s liabilities exceed its assets by over £14,000, showing erosion of capital and poor solvency. The negative net current assets indicate ongoing liquidity strain, raising concerns over the company’s ability to meet short-term obligations. The lack of profit retention and absence of positive equity undermine confidence in debt servicing capacity. Given these factors and early stage of business with no clear turnaround evidence, credit extension is not advisable without substantial financial support or guarantees.

2. Financial Strength:
   The balance sheet reveals fixed assets of only £3,239 and current assets of £6,522 against current liabilities of £24,151, resulting in a working capital deficit of £16,992 as of 31 January 2024. Total net liabilities stand at £14,109, slightly improved from £17,220 the prior year, but still materially negative. The company has no accumulated reserves or equity cushions, indicating sustained losses or capital injections that have not restored solvency. Minimal fixed assets limit collateral value for secured lending, while high current liabilities relative to current assets highlight short-term financial stress.

3. Cash Flow Assessment:
   The company’s negative net current assets suggest ongoing liquidity challenges and potential difficulty in meeting immediate creditor demands. Without detailed cash flow statements, the current data implies limited cash inflows or delays in receivables collection, insufficient to cover payables and accrued expenses. The micro scale and small team (2 employees) may keep overheads low, but current liabilities nearly four times current assets indicate working capital constraints. The absence of positive cash reserves or liquid assets further pressures operational flexibility.

4. Monitoring Points:

• Improvement in net assets and working capital position over coming reporting periods.
• Evidence of positive cash flow generation from operations or capital injections.
• Reduction in current liabilities or restructuring of short-term debt.
• Profitability trends or revenue growth from creative workshops and events business.
• Stability and effectiveness of management, particularly given sole control by Ms. Aboagye.