Company Number: 15360616

Analysis Date: 2025-07-29 16:38 UTC

1. Credit Opinion: APPROVE with conditions. PROJECT VR LTD is a newly incorporated company (Dec 2023) operating in IT consultancy (SIC 62020). The initial financials show positive net assets and working capital, reflecting a sound financial base. However, the company has a very short trading history (just over one year) and minimal tangible fixed assets, with most assets being intangible. Credit approval should be conditional on ongoing monitoring of operational cash flows and profitability as trading performance develops.

2. Financial Strength: The company’s balance sheet as at 31 December 2024 shows total net assets of £15,439, consisting primarily of £5,006 intangible fixed assets and £28,995 in cash. Current liabilities are £18,562, leaving net current assets (working capital) of £10,433. Shareholders’ funds equal net assets, reflecting no external borrowings. Overall, the company has a modest but positive equity base and low leverage, which is typical for a start-up. The intangible asset base suggests investment in software or intellectual property, relevant to their consultancy activities.

3. Cash Flow Assessment: PROJECT VR LTD holds £28,995 in cash against short-term liabilities of £18,562, indicating a comfortable liquidity position at year-end. The positive net current assets imply that the company can meet its short-term obligations without difficulty. However, cash flow data for operating activities is not provided, so the sustainability of liquidity depends on ongoing revenue generation and expense control. The small number of employees (average 3) suggests limited fixed overheads, which is positive for cash burn management.

4. Monitoring Points:

• Revenue growth and profitability: As a new company, actual income generation and margin development are key.
• Cash flow trends: Monitor operating cash flow to ensure liquidity remains sufficient.
• Client concentration and contract stability: Dependency on few clients could increase risk.
• Management track record: Director’s experience in cybersecurity consultancy is a positive factor.
• Intangible asset valuation and amortization: Watch for impairment risks or changes in asset values.
• Timely filing of future accounts and confirmation statements to avoid compliance issues.