IDE VISION LIMITED

Executive Summary

IDE Vision Limited’s financial position has weakened significantly, with negative net assets and strained liquidity due to high current and long-term liabilities. The company’s cash flow situation and equity erosion present substantial credit risk, leading to a decline recommendation for new credit facilities. Close monitoring of liquidity and management’s remediation efforts is essential going forward.

IDE VISION LIMITED - Analysis Report

Company Number: 13030037

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion:
   DECLINE. IDE Vision Limited exhibits a deteriorating financial position with net liabilities of £48,028 as of the most recent accounts (2023-12-31), down from positive net assets of £105,492 in the prior year. The company’s current liabilities, particularly long-term creditors of £505,000, significantly exceed its current assets, resulting in negative net current assets of £245,852. This signals liquidity stress and an inability to meet short-term obligations promptly. The absence of employees and limited operational scale further undermine operational resilience. Without signs of improved cash flow or strengthened equity, credit extension is high risk.

2. Financial Strength:
   The balance sheet reveals a weakening position over the past year. Fixed assets reduced moderately from £772,793 to £702,824, indicating some asset disposals or depreciation. Current assets declined sharply by over £180,000 to £168,062, while current liabilities remain substantial at £505,000. The company’s net assets shifted from a positive £105,492 in 2022 to negative £48,028 in 2023, reflecting accumulated losses or increased liabilities. Shareholders’ funds are negative, indicating erosion of equity capital. Overall, the company lacks sufficient net worth buffer to absorb operational or market shocks.

3. Cash Flow Assessment:
   Current assets, including cash and receivables, are insufficient to cover near-term liabilities, resulting in a negative working capital position (net current liabilities of £245,852). This suggests tight liquidity and potential cash flow constraints. The company’s micro-entity status and lack of employees imply limited revenue-generating activity or reliance on external funding sources. No audit was performed, and limited disclosure inhibits detailed cash flow tracing. The sizeable long-term creditor balance (£505,000) raises concerns about debt servicing and refinancing ability without additional capital injection.

4. Monitoring Points:

• Track quarterly cash flow and working capital changes to detect liquidity improvements or further deterioration.
• Monitor any new filings or disclosures indicating capital injections or debt restructuring.
• Watch for changes in creditor terms or covenant breaches on existing long-term debt.
• Assess management actions to restore profitability and equity levels, including potential asset sales or business restructuring.
• Observe any changes in director appointments that may impact governance or strategic direction.