VOID STUDIOS ARCHITECTURE + RESEARCH LIMITED

Executive Summary

VOID STUDIOS ARCHITECTURE + RESEARCH LIMITED has improved its financial health significantly over the last year, overcoming prior liquidity challenges and building a modest equity base. The company is financially stable but should focus on strengthening cash reserves and managing growth carefully to ensure continued wellness and operational resilience.

VOID STUDIOS ARCHITECTURE + RESEARCH LIMITED - Analysis Report

Company Number: 14434681

Analysis Date: 2025-07-29 12:58 UTC

Financial Health Assessment Report

Company: VOID STUDIOS ARCHITECTURE + RESEARCH LIMITED
Assessment Date: Post 31 October 2024 financial year

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1. Financial Health Score: B-

Explanation:
The company shows a positive turnaround from a previously precarious position but remains at an early growth stage with limited financial history. The net assets and working capital have improved from a negative to a positive position, indicating recovery and increased stability. However, the relatively small scale of operations and limited current assets suggest cautious optimism rather than robust financial health.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£19,100	Moderate investment in long-term assets; healthy for micro company.
Current Assets	£5,546	Cash and short-term assets have decreased sharply from prior year; may indicate cash usage or receivables reduction.
Current Liabilities	£4,858	Short-term debts are manageable, slightly lower than prior year.
Net Current Assets	£688	Small positive working capital; indicates ability to cover short-term liabilities, but margin is thin.
Net Assets (Shareholders' Funds)	£19,788	Strong improvement from near zero; positive equity reflects retained investment or profits.
Employee Count	2	Small workforce consistent with micro company status; manageable overhead.
Account Category	Micro	Minimal filing requirements; typical for a startup or small business.

Interpretation of Vital Signs:

• The shift from negative net current assets (-£11,353 in 2023) to a positive £688 in 2024 signals a significant improvement in liquidity and short-term financial health. This is a key "vital sign" indicating the company has addressed immediate liquidity challenges.
• The increase in fixed assets suggests reinvestment into the business infrastructure or equipment, which could support future revenue growth.
• The modest current assets figure paired with a small working capital cushion means the company still needs to carefully manage cash flow to avoid liquidity stress.
• Shareholders’ funds increasing from £14 to almost £20k shows enhanced capital base and improved solvency.

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3. Diagnosis:

The company is in an early developmental phase with symptoms of prior financial distress (negative working capital in 2023) now showing signs of recovery and stabilisation. The financial "pulse" indicates a business that was previously under liquidity stress but has taken steps to strengthen its balance sheet and reduce short-term liabilities.

The relatively low current assets and working capital margin suggest the company is still vulnerable to cash flow shocks or unexpected expenses. However, the positive net assets and reinvestment in fixed assets are positive signs of ongoing business development and strategic investment.

Given the company’s micro category and young age (incorporated in late 2022), the financial condition is typical for a start-up that is establishing operational footing and building asset base. The presence of two directors with substantial control and active management roles supports attentive governance, which is valuable in managing turnaround and growth.

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4. Recommendations:

• Enhance Cash Flow Management:
  Maintain a close watch on receivables and payables to ensure the company maintains a positive and growing working capital buffer. Consider short-term finance options or credit facilities to cushion against liquidity fluctuations.

• Build Cash Reserves:
  Given the thin working capital margin, it is important to build cash reserves gradually to provide a "financial cushion" against unexpected costs or downturns.

• Monitor Fixed Asset Investment:
  While investment in fixed assets is positive, ensure these expenditures align with business growth plans and do not overextend the company’s cash resources. Avoid over-investing in non-liquid assets at the expense of operational liquidity.

• Strengthen Revenue Streams:
  Focus on growing client base and revenues to improve current assets and profitability, supporting further equity growth and financial robustness.

• Regular Financial Reviews:
  Schedule periodic internal financial health checks to detect early symptoms of distress (e.g., declining liquidity ratios, rising liabilities) and implement corrective actions proactively.

• Consider Professional Advice:
  Given the small scale and early stage, professional advice on tax planning, grant opportunities, and efficient financial structuring may yield benefits.

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Executive Summary

VOID STUDIOS ARCHITECTURE + RESEARCH LIMITED has made a significant recovery from previous liquidity challenges, moving from negative to positive working capital and strengthening its equity base. While the company shows promising signs of financial stabilisation and asset investment, it remains at an early stage with limited cash reserves and a thin liquidity margin. Careful cash flow management and strategic growth initiatives are essential to support ongoing financial health and business resilience.