ABC VISUALS LTD

Executive Summary

ABC VISUALS LTD is currently financially distressed, exhibiting negative net assets and insufficient liquidity to meet obligations. The company’s financial position has deteriorated over recent years with no clear signs of profitability or operational growth. Given these factors, credit extension is not recommended without significant improvement in financial health or management assurances.

ABC VISUALS LTD - Analysis Report

Company Number: 13164674

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: DECLINE
   ABC VISUALS LTD shows persistent net liabilities and negative shareholders' funds, indicating financial distress. The company has net assets of -£3,701 as of the latest accounts and a history of negative net current assets, reflecting insufficient short-term liquidity to cover obligations. The low cash balance (£1,429) against current liabilities (£2,272) further weakens its ability to meet debts as they fall due. Lack of audited accounts and minimal operational scale (one administrative employee, low staff costs) raise concerns about management capacity and business viability. Without evidence of profit generation or improving financial position, extending credit entails significant risk.

2. Financial Strength:
   The balance sheet reveals consistent net liabilities over the last three years, worsening from -£2,800 in 2023 to -£3,701 in 2024. Current liabilities exceed current assets, resulting in negative working capital. Share capital is nominal (£100), providing minimal equity buffer. The company’s total assets less current liabilities are negative (£-1,429), and there are long-term creditors of £2,272, indicating reliance on external financing without sufficient asset backing. This weak financial structure suggests structural undercapitalization and vulnerability to cash flow shocks.

3. Cash Flow Assessment:
   Cash on hand is low and insufficient to cover even short-term liabilities, with cash increasing modestly from £811 to £1,429 but still below current liabilities of £2,272. The company’s net current assets remain negative, implying negative working capital. There is no indication of operational cash inflows or profitability, with minimal staff costs and no disclosed revenues or profits. The limited liquidity position suggests difficulty in servicing any new debt or credit terms without additional capital injection or operational turnaround.

4. Monitoring Points:

• Improvement in net assets and elimination of negative equity through profitable operations or capital injection.
• Positive cash flow generation and increasing cash balances relative to current liabilities.
• Evidence of revenue growth and operational scalability given the diverse SIC codes indicating design, advertising, software development, and retail activities.
• Management actions to reduce liabilities or restructure debt to improve solvency.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.