SCENIC SET DESIGN LTD

Executive Summary

SCENIC SET DESIGN LTD operates at a very small scale with declining turnover and minimal net assets, resulting in a fragile financial position. The company’s limited liquidity and tight margins suggest it cannot comfortably support credit facilities at this time. Ongoing monitoring of financial performance and liquidity is recommended before reconsidering credit exposure.

SCENIC SET DESIGN LTD - Analysis Report

Company Number: 14471051

Analysis Date: 2025-07-20 11:54 UTC

1. Credit Opinion: DECLINE
   SCENIC SET DESIGN LTD is a micro-entity with very modest turnover (£55k in the latest year, down from £91k previously) and minimal net assets (£1.9k). The decline in turnover and net assets indicates a negative growth trajectory. The company shows extremely limited scale of operations with no employees and very low working capital. The thin margin between turnover and cost of materials suggests tight profitability. Given the small and declining financial base, this company is unlikely to comfortably service any meaningful credit facility or absorb economic shocks. The absence of fixed assets or other financial buffers limits resilience. The single director and sole shareholder control provides clear governance but offers no diversification of management risk. Overall, the financial profile does not support an approval for credit at this stage.

2. Financial Strength:
   The balance sheet is minimal with net assets of £1,891 and current assets of £1,890, all presumably cash or equivalents, indicating no fixed assets or significant tangible security. Shareholder funds are small but positive. The company does not have any long-term liabilities, which reduces financial risk, but also reflects a very limited capital base. The decline in net assets from £4,492 to £1,891 year-on-year shows erosion of equity, which is a negative trend. The company fits the micro-entity classification and is still solvent but very fragile financially.

3. Cash Flow Assessment:
   Working capital (net current assets) is positive but very modest at £1,890, down from £4,491. This small liquidity buffer may be insufficient to cover unexpected expenses or delays in receivables. The company does not report any employees, indicating low operational overheads, but cost of materials is nearly as large as turnover, implying tight cash flow margins. There is no indication of significant cash reserves or access to credit lines. The limited scale and low turnover imply cash flow is vulnerable to disruption.

4. Monitoring Points:

• Turnover and profitability trends in upcoming accounts to assess recovery or further decline.
• Cash and working capital levels to ensure ongoing liquidity.
• Any changes in director or ownership structure that may impact management or control risks.
• Timely filing of accounts and confirmation statements to monitor compliance and regulatory risk.
• Potential emergence of liabilities or borrowing that could stress the balance sheet.