NVISIBLE PRODUCTIONS LIMITED

Executive Summary

NVISIBLE PRODUCTIONS LIMITED is a newly formed private limited company in the amusement and recreation sector showing initial profitability and positive net assets. However, moderate liquidity risk exists due to significant accruals and related party debt, combined with limited financial history that constrains trend analysis. Continued monitoring of cash flows, related party transactions, and operational performance is recommended to assess ongoing financial stability.

NVISIBLE PRODUCTIONS LIMITED - Analysis Report

Company Number: 15277937

Analysis Date: 2025-07-20 12:50 UTC

1. Risk Rating: MEDIUM
   Justification: NVISIBLE PRODUCTIONS LIMITED is a very recently incorporated company (Nov 2023) with one full financial year reported. The company shows a modest net asset position (£49.7k) and positive working capital (£49.7k). However, current liabilities are significant (£259.9k) relative to current assets (£309.6k), and the company has related party loans outstanding. The absence of a longer trading history and limited capital base suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Liquidity Pressure: Although current assets exceed current liabilities, the large proportion of accruals and deferred income (£191.6k) within creditors suggests potential timing issues in cash flows. The company should be monitored for its ability to convert debtors and prepayments into cash in a timely manner.
• Related Party Debt: The company owes £12.3k to a director and £8.2k to a related company, which may indicate reliance on director or related party financing. This can pose governance and financial stability risks if these funds are not secured or formally documented.
• Limited Financial History: Having only one accounting period and minimal share capital (£81) limits the ability to assess operational sustainability and financial trends. The company’s ability to sustain profitability and meet obligations over time remains uncertain.

3. Positive Indicators:

• Profitability in First Year: The company reported a profit of £49.6k in its inaugural period, indicating potential operational viability in its sector (amusement and recreation activities).
• Positive Net Assets: Net assets and shareholders’ funds are positive, suggesting the company is not currently insolvent.
• Timely Compliance: No overdue filings reported for accounts or confirmation statements, reflecting good compliance and governance practices to date.
• Experienced Directors: Directors have relevant industry experience (production, entertainment), which may support operational stability.

4. Due Diligence Notes:

• Review the nature and terms of related party transactions and loans to assess any contingent liabilities or risk of capital calls.
• Examine cash flow forecasts and debtor collection history to evaluate liquidity risk beyond the balance sheet snapshot.
• Monitor accruals and deferred income components closely to understand timing and certainty of cash outflows.
• Obtain further information on client contracts, revenue streams, and business plans given the company’s young age and specific industry classification.
• Confirm no director disqualifications or regulatory issues exist beyond the public record provided.