Company Number: NI671230

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: LOW
   HILLCREST VFX LIMITED demonstrates a stable financial position consistent with a micro-entity. The company shows positive net assets and increasing shareholder funds over the last three years, with no overdue filings or indications of distress.

2. Key Concerns:

• Current liabilities have more than doubled from £11,220 in 2022 to £24,687 in 2023, a sharp increase that merits monitoring for potential liquidity strain.
• The company holds minimal share capital (£100), which is typical for micro companies but limits equity buffer in financial downturns.
• Limited scale of operations (average 2 employees) may expose the company to operational risk if key personnel changes or market conditions shift.

3. Positive Indicators:

• Net assets and shareholders’ funds have steadily increased from £10,736 in 2020 to £18,166 in 2023, indicating retained profitability or capital injection.
• Current assets have grown significantly to £32,541 in 2023, providing a reasonable short-term asset base against liabilities.
• The company is compliant with filing requirements; no overdue annual accounts or confirmation statements.
• The business operates in a specialized sector (software development, SIC 62012) which can offer scalability and growth potential.

4. Due Diligence Notes:

• Investigate the composition and reasons behind the large increase in current liabilities in 2023 to assess any short-term repayment risks or supplier/debtor issues.
• Review cash flow statements (if available) to confirm liquidity adequacy beyond balance sheet snapshots.
• Confirm the nature and stability of revenue streams given the small employee base and niche sector.
• Check for any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.
• Verify director background and any related party transactions given sole director status.