CIVIL VISUALS LIMITED

Executive Summary

Civil Visuals Limited exhibits limited financial strength and liquidity with a small equity base and persistent working capital deficits, supported mainly by director loans. While the company is compliant and active, its ability to service debt is constrained and dependent on improved cash flow performance. Credit approval is recommended only with tight conditions and ongoing monitoring.

CIVIL VISUALS LIMITED - Analysis Report

Company Number: 13248714

Analysis Date: 2025-07-20 11:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Civil Visuals Limited is a very young private limited company incorporated in 2021, operating in the IT consultancy sector. The latest accounts show a very modest net asset base (£128) and persistent net current liabilities (£940 as of 31/03/2024), indicating working capital constraints. Although the company is currently active and compliant with filing deadlines, its financial buffers are minimal and liquidity is tight. Management includes related parties with director advances, which suggests possible reliance on insider funding. Credit approval could be considered with conditions such as limits on facility size, short tenor, and regular financial updates to monitor cash flow and working capital.

2. Financial Strength: Weak to Moderate
   The company’s balance sheet reveals low fixed assets (£1,068) and a small cash balance (£1,348) relative to current liabilities (£2,288), resulting in a negative net working capital position of £940. Net assets have declined sharply from £893 in 2021 to £128 in 2024, primarily due to cumulative losses reflected in the profit and loss reserves. The low equity base and ongoing net current liabilities suggest limited financial strength and vulnerability to short-term cash flow shocks. The company’s share capital is nominal (£10), indicating limited external equity investment.

3. Cash Flow Assessment: Tight Liquidity and Working Capital Deficit
   Current liabilities exceed current assets by a significant margin, with cash balances barely covering short-term obligations. The company relies on director advances to manage liquidity, as evidenced by outstanding negative director loan balances (£561 combined). This indicates ongoing cash flow pressures and dependence on insider funding. There is no audit, and abridged accounts limit visibility into profitability and cash flow generation. The company’s ability to generate positive operating cash flow is unproven and should be closely scrutinized before extending credit.

4. Monitoring Points:

• Regular review of monthly management accounts focusing on cash flow, working capital movements, and debtor collections.
• Monitoring director loan account balances and any changes in insider funding arrangements.
• Watch for improvements or deterioration in net asset position and liquidity ratios.
• Confirmation of no overdue filings or changes in company status.
• Assessment of business growth and contract wins to support future cash flow improvements.