NEOVISE LTD

Executive Summary

NEOVISE LTD exhibits critical financial distress with severely negative net assets and inadequate liquidity, undermining its ability to meet debt obligations. The company’s financial position has deteriorated over recent years with no operational staff or evident revenue generation, highlighting significant credit risk. Credit facilities are not recommended without substantial evidence of financial restructuring or capital support.

NEOVISE LTD - Analysis Report

Company Number: 12944894

Analysis Date: 2025-07-29 20:17 UTC

1. Credit Opinion: DECLINE
   NEOVISE LTD presents significant credit risk due to its extremely weak liquidity position and negative net asset base. The company’s current liabilities drastically exceed current assets (by over £358k), indicating a severe working capital shortfall. Additionally, net assets are deeply negative (£404,675), suggesting that total liabilities outweigh assets substantially. These factors imply the company is unlikely to meet short-term obligations without external support or refinancing. Absence of employees and minimal trading activity further weaken confidence in operational sustainability. The company’s financial trajectory is stagnant with worsening net assets from £97k positive in 2021 to a large negative position now, indicating deteriorating financial health.

2. Financial Strength:
   The balance sheet reveals a micro-entity with negligible current assets (£123) against substantial current liabilities (£358,498) and non-current liabilities (£46,300). The fixed asset value reported in earlier years (£560,000) is no longer reflected in recent accounts, likely impaired or derecognized, causing a sharp decline in net assets. Shareholders’ funds are negative and worsening, indicating erosion of equity and high leverage. The company does not appear to have sufficient asset backing to cover its debts, signaling weak financial strength and potential solvency concerns.

3. Cash Flow Assessment:
   Very limited current assets and extremely high current liabilities reflect poor liquidity and working capital deficiency. With zero employees and minimal operational activity, cash inflows are presumably low or non-existent. The large short-term creditor balances suggest heavy reliance on external funding or delayed payments. Without positive cash flow generation or asset sales, the company’s ability to service debts and meet day-to-day expenses is questionable.

4. Monitoring Points:

• Monitor future filings for improvement or further deterioration in net current assets and net assets.
• Watch for any restructuring or refinancing announcements to address the large liability balances.
• Review changes in fixed assets or capital injections that might improve solvency.
• Track director or shareholder actions indicating plans to stabilize the business or potential insolvency risks.
• Confirm timely submission of accounts and confirmation statements to assess ongoing compliance and governance.