Company Number: 13131514

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: LOW
   Vast Studio Ltd demonstrates solid financial health with strong net current assets, positive net assets, and no overdue filings. The company’s cash position is robust relative to liabilities, indicating low solvency and liquidity risk.

2. Key Concerns:

• Customer Concentration and Receivables: Debtors decreased notably from £66,825 in 2023 to £41,241 in 2024, which may reflect either improved collections or reduced sales; further analysis is needed to assess revenue sustainability.
• Small Workforce: The company operates with only one employee (including the director) which could limit operational scalability and resilience.
• Goodwill Amortisation: The company holds intangible assets (goodwill) which is being amortised; impairment risk should be monitored due to its relatively finite life and potential impact on equity.

3. Positive Indicators:

• Strong Liquidity: Cash on hand increased from £194,282 to £205,124, providing ample coverage against short-term liabilities of £57,114.
• Increasing Net Assets: Shareholders’ funds rose from £174,870 in 2023 to £199,738 in 2024, indicating retained profitability and growth in equity.
• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue notices or penalties, reflecting good governance.

4. Due Diligence Notes:

• Review revenue trends and debtor ageing to confirm the quality and sustainability of receivables and turnover, particularly given the SIC code classification in casting activities which may be project-based.
• Assess dependency on key clients or contracts, as a small team and specialized industry can pose concentration risk.
• Evaluate the assumptions behind goodwill valuation and amortisation schedules, including any indications for impairment.
• Confirm no contingent liabilities or off-balance sheet exposures exist beyond provisions disclosed (£1,311).
• Verify director’s background and role, given director is sole employee, to understand management capacity and succession plans.