ORVIST LIMITED

Executive Summary

Orvist Limited is a very small micro-entity with minimal financial resources and a declining net asset position. The company’s limited liquidity and lack of trading history present a high credit risk. Approval of credit facilities is not recommended without significant strengthening of financial position or collateral support.

ORVIST LIMITED - Analysis Report

Company Number: 13889018

Analysis Date: 2025-07-20 19:07 UTC

1. Credit Opinion: DECLINE
   Orvist Limited is a very small micro-entity with minimal assets and an extremely limited financial footprint. The latest accounts show net current assets of only £29 and net assets of £31, down significantly from the prior year. This indicates very low financial capacity to service any meaningful debt or credit facilities. The company has just one employee and operates in artistic creation and food services, which may be volatile sectors. The absence of significant fixed assets or reserves, combined with the early stage of the company (incorporated 2022), suggests a lack of established trading history and business resilience. Without stronger financial resources or evidence of stable cash flows, the risk of default on credit is high.

2. Financial Strength:
   The balance sheet is very weak. Current assets (£35) barely cover current liabilities (£6), showing a working capital surplus but on a negligible scale. Total net assets have decreased from £75 to £31 over the year, signaling erosion of equity and possibly operating losses. There are no long-term liabilities or provisions, and fixed assets are not disclosed, implying the company likely owns no significant tangible assets. Shareholders funds equal net assets, indicating no external debt but also minimal capital base. Overall, the company’s financial strength is very fragile.

3. Cash Flow Assessment:
   With only one employee and negligible current assets, liquidity appears very limited. The decline in current assets from £254 to £35 year-on-year raises concerns about shrinking cash or receivables. The net current assets remain positive but are insufficient to support operating expenses or debt service comfortably. The micro-entity status and minimal scale suggest cash flows are likely tight and dependent on immediate receipts rather than a robust working capital cycle. This reduces the company’s ability to absorb financial shocks or delays in payments.

4. Monitoring Points:

• Track changes in net assets and working capital each year to detect further erosion or improvement.
• Monitor the company’s ability to generate cash flow from operations given its limited financial base.
• Review any new filings for evidence of increased capital injection or asset acquisition.
• Watch for any overdue filings or changes in director status that might signal governance issues.
• Assess sector-specific risks given the company’s artistic creation and food service activities, which may be affected by economic downturns.