ENVISIONIT DEEP AI LTD

Executive Summary

Envisionit Deep AI Ltd maintains a solvent position with increasing shareholders’ funds but exhibits significant liquidity risk due to a steep decline in cash on hand and high debtor balances. The absence of audited financial statements limits visibility into operational performance and cash flow quality. Careful scrutiny of debtor recoverability and cash flow management is recommended to assess ongoing financial stability.

ENVISIONIT DEEP AI LTD - Analysis Report

Company Number: 12518335

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and shareholders’ funds, indicating solvency. However, a notable decline in cash reserves from £671,889 (2023) to £23,711 (2024) and a large portion of current assets tied in trade and other debtors suggests potential liquidity concerns. The company is small, exempt from audit, which limits transparency.

2. Key Concerns:

• Liquidity Risk: Cash at bank has significantly decreased by approximately £648k within one year, despite current assets remaining substantial due to high debtor balances, which may not be easily or quickly converted to cash.
• Debtor Concentration and Credit Risk: Debtors constitute a large portion of current assets (£584k), including £250k due beyond one year, raising questions about collectability and cash flow timing.
• Lack of Audit and Limited Financial Disclosure: As a small company with exemption from audit and no income statement filed, financial transparency and oversight are limited, constraining full risk assessment.

3. Positive Indicators:

• Solvency and Equity Strengthening: Shareholders’ funds increased from £1.41M (2023) to £1.58M (2024), signaling capital support or retained earnings improving net worth.
• Positive Net Current Assets: Despite cash reduction, net current assets remain positive at £291k, reflecting current assets exceed current liabilities.
• Experienced Management Team: Directors include a certified chartered accountant and CTO, indicating professional expertise overseeing finance and operations.

4. Due Diligence Notes:

• Investigate the nature and aging of the trade and other debtors, especially the £250k long-term debtor, to assess recoverability and impact on liquidity.
• Clarify the cause of the sharp reduction in cash reserves during the last financial year and review cash flow forecasts.
• Obtain management accounts or other internal financial reports to better understand profitability, cash generation, and operational sustainability given the absence of an audited income statement.
• Review any related party transactions or advances reflected in debtor balances.
• Confirm compliance with filing deadlines and any potential contingent liabilities not disclosed in the limited filed accounts.