Company Number: 14837816

Analysis Date: 2025-07-29 17:08 UTC

1. Credit Opinion: DECLINE. OPUS ART COLLECTION LTD is a newly incorporated micro-entity with limited trading history (incorporated May 2023). Its latest accounts as at May 2024 show a negative net asset position (£-30,563), primarily due to long-term creditors (£61,931) exceeding total assets. The company has minimal fixed assets and relies on current assets of £33,286 against short-term creditors of £2,417, but the significant long-term liabilities raise concerns about its ability to meet debt obligations. The business is in an early development phase with only one employee, and the principal shareholder holds full control. Without proven cash flow generation or equity injection, the risk of default is elevated.

2. Financial Strength: The balance sheet reveals very weak financial strength. Fixed assets are negligible (£499), and while net current assets are positive (£30,869), this is offset by substantial creditors due after one year (£61,931), leading to negative shareholders’ funds. This indicates reliance on external funding or loans, which may not be sustainable. The micro-entity classification and minimal employee base suggest limited operational scale and capital base.

3. Cash Flow Assessment: Current assets of £33,286 against current liabilities of £2,417 show adequate short-term liquidity on paper; however, the lack of detailed cash flow statements and the presence of significant long-term liabilities pose concerns about ongoing liquidity and working capital management. The company’s ability to generate operating cash flow remains unproven given its recent formation and lack of trading history.

4. Monitoring Points:

• Monitor future filings for improvements in net asset position and reduction in long-term liabilities.
• Track cash flow statements to assess operational cash generation.
• Review any equity injections or loan restructuring that improve solvency.
• Watch for changes in director appointments and PSC holdings that might indicate strategic shifts.
• Assess payment performance on any credit facilities extended.