PROFESSIONAL VIDEO PRODUCTIONS LIMITED

Executive Summary

Professional Video Productions Limited is a recently formed micro-entity with a weak balance sheet showing net liabilities and minimal current assets. The company lacks demonstrated financial capacity to service credit obligations, coupled with limited operational scale and high ownership concentration. Credit should be declined until substantial improvements in financial position and cash flow are evidenced.

PROFESSIONAL VIDEO PRODUCTIONS LIMITED - Analysis Report

Company Number: NI698736

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: DECLINE
   Professional Video Productions Limited is a newly incorporated micro-entity with minimal operating history and poor financial footing at the latest year end. The company reports net liabilities of £3,438, indicating an inability to cover short-term obligations with current assets. The absence of positive net current assets or shareholder funds raises concerns about repayment capacity and financial resilience. With only one employee and no apparent revenue or profit data, the business lacks demonstrated cash generation and operational scale needed for credit approval. Additionally, the sole director and controlling shareholder concentration increases risk concentration without evident mitigating governance structures.

2. Financial Strength:
   The balance sheet shows total current assets of £1,657 against current liabilities of £5,095, yielding negative net current assets of £3,438. Total net assets are also negative by the same amount, reflecting that liabilities exceed assets. This weak equity position signals limited financial buffer to absorb losses or fund growth. The micro-entity status limits the scale of operations and likely restricts access to external capital. No fixed or long-term assets are reported, suggesting no collateralizable security for lending.

3. Cash Flow Assessment:
   Insufficient cash and working capital are evident from low current assets and significant short-term liabilities. The lack of detailed profit and loss data prevents cash flow analysis but the negative net working capital implies liquidity strain. The single employee and start-up status suggest limited operating cash inflows. Without sustained cash generation, the company is unlikely to service credit facilities or meet payment terms reliably.

4. Monitoring Points:

• Future filings for improved net current assets and positive net assets.
• Evidence of revenue growth and profitability to support cash flow generation.
• Changes in director or ownership structure reducing concentration risk.
• Timely submission of accounts and confirmation statements to gauge management effectiveness.
• Any external financing or capital injection improving liquidity and solvency.