HYPERFORM VIDEO LIMITED

Executive Summary

Hyperform Video Limited is a micro-entity with a fragile equity base but currently adequate working capital and no overdue filings. The company relies partially on director funding, which mitigates some risk but requires close monitoring. Conditional approval is recommended, focusing on maintaining liquidity and financial discipline going forward.

HYPERFORM VIDEO LIMITED - Analysis Report

Company Number: 13526604

Analysis Date: 2025-07-20 18:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hyperform Video Limited is a micro-entity with a very small net asset base (£525 at 31 July 2024) and minimal equity. While the company is active with no overdue filings and shows some stability in total assets, the low net assets and high accruals/deferred income (£26,500) relative to net assets indicate a tight financial position. The director has been advanced substantial funds (£~30k owed at year-end), which introduces some risk but also shows management is willing to support the company financially. Given the small scale, the company’s ability to meet short-term obligations appears adequate, but any deterioration in trading or cash flow could pose challenges. Approval is granted with conditions on maintaining working capital and monitoring director advances.

2. Financial Strength:

• Fixed assets increased from £5,879 to £14,619, indicating some investment in long-term assets.
• Current assets decreased from £42,337 to £33,616, reducing liquidity.
• Current liabilities slightly increased from £20,998 to £21,210.
• Net current assets decreased from £21,339 to £12,406, reflecting a reduction in working capital.
• Total net assets are very low (£525), barely above zero, signaling very limited equity buffer.
• The company’s micro-entity status limits detailed financial disclosure but the balance sheet shows a fragile equity position.

3. Cash Flow Assessment:

• Net current assets of £12,406 provide a modest working capital cushion.
• The director’s loan account with £29,933 receivable from the director is an asset but dependent on the director’s ability to repay.
• Accruals and deferred income (£26,500) are substantial and may pressure cash flows if not converted to revenue or settled timely.
• The company employs 2 staff, suggesting low fixed operating costs.
• Absence of detailed cash flow statements limits full liquidity assessment, but current assets vs liabilities ratio is roughly 1.58:1, which is acceptable for a micro business.

4. Monitoring Points:

• Track changes in net current assets and accruals/deferred income to avoid working capital stress.
• Monitor director loan balance and ensure repayment terms are adhered to and documented.
• Watch for any overdue filings or missed payments that could indicate financial distress.
• Review trading performance and revenue growth to assess sustainability beyond director funding.
• Keep an eye on any increase in liabilities or reduction in cash balances.