Company Number: 13166569

Analysis Date: 2025-07-29 18:39 UTC

1. Credit Opinion: APPROVE
   ON VIRTUAL WORLD LTD presents a sound credit profile for its size and stage. As a micro-entity incorporated in 2021, it shows growth in net assets from £100 to £888 in the latest year, reflecting modest but positive financial development. The company maintains positive net current assets, indicating the ability to meet short-term obligations. No overdue filings or adverse status exist, and directors appear stable. While the scale is small and operating without employees, the company’s financial stewardship is adequate for its business scope, supporting credit approval for typical micro-enterprise lending limits.

2. Financial Strength:
   The balance sheet shows total net assets of £888 as at 31 January 2024, up from £100 the previous year. Fixed assets increased to £616, suggesting some investment in operational capability. Current assets of £1,250 comfortably cover current liabilities of £978, resulting in net current assets (working capital) of £272. Shareholders’ funds equal net assets, confirming no external equity dilution. The modest asset base aligns with the micro entity size and early stage, but no signs of financial distress or leverage are evident.

3. Cash Flow Assessment:
   The positive net current assets indicate reasonable liquidity to cover short-term liabilities. Although no detailed cash flow statement is provided, the working capital position and absence of overdue creditors suggest the company can service debts and operating expenses promptly. The lack of employees implies low fixed overhead, reducing cash flow pressure. Continued monitoring of cash inflows from operations is recommended as the company grows.

4. Monitoring Points:

• Track revenue and profit growth as future accounts become available to ensure continued financial improvement.
• Monitor cash flow statements once filed to confirm liquidity trends and ability to meet debt service.
• Watch for changes in director appointments or significant ownership shifts that might affect governance.
• Review any increase in liabilities or delayed payments that could signal emerging credit risk.