Company Number: 13520390

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Red Venus Ltd is a micro private limited company operating in management consultancy. The company demonstrates positive net current assets and shareholders’ funds, indicating a solvent position. However, the equity has declined from £25,379 in 2023 to £16,753 in 2024, reflecting a weakening financial position that warrants caution. The absence of employees and limited operational scale may affect business resilience and cash flow stability. Approval is recommended subject to monitoring of financial performance and cash flow trends to ensure ongoing ability to service credit facilities.

2. Financial Strength:
   The company’s balance sheet shows current assets of £27,035 against current liabilities of £10,282 as of 31 July 2024, resulting in net current assets of £16,753. Shareholders’ funds mirror this figure, evidencing no long-term liabilities. The decline in equity from £25,379 to £16,753 over the last year indicates some erosion of reserves, possibly due to operational losses or increased liabilities. The company maintains a very low share capital of £2, typical of micro entities. Overall, the balance sheet remains positive but with signs of weakening.

3. Cash Flow Assessment:
   Cash figures are not explicitly stated for 2024 but were £8,019 in 2023, suggesting some liquidity on hand. Debtors remain significant (£18,847 in 2023), which points to working capital tied up in receivables. The increase in current liabilities to £10,282 from £6,584 in 2023 may pressure short-term liquidity. The net current asset position is positive but has decreased, so careful management of cash collections and payables is critical to maintain liquidity and meet short-term obligations.

4. Monitoring Points:

• Track quarterly updates on cash balances and debtor collections to ensure liquidity remains sufficient.
• Monitor changes in current liabilities and any new debt obligations that could strain working capital.
• Watch for any operational losses impacting equity further, as the downward trend in net assets could limit credit capacity.
• Review director and management conduct and any changes in ownership or control that could affect governance and decision-making.
• Assess business activity levels given the lack of employees and how this impacts revenue generation and profitability.