Company Number: SC679652

Analysis Date: 2025-07-29 20:32 UTC

1. Credit Opinion: DECLINE

Viable Creative CIC shows significant financial deterioration over the most recent year. The company reported zero turnover for the year ending November 2023, compared to a modest turnover of £2,750 in 2022. Operating losses of £3,623 were incurred in 2023, a reversal from a small profit of £210 in the prior year. The net current liabilities position of £272 and negative net assets indicate an erosion of the company’s financial base. With no turnover and ongoing losses, the company currently lacks the ability to service any new debt or credit facilities. There is no indication of cash inflows or business growth, and no employees or directors’ remuneration, suggesting minimal operational activity. Given the financial stress and absence of revenue generation, extending credit would be high risk without substantial evidence of an imminent turnaround or external support.

2. Financial Strength:

The balance sheet reveals a fragile financial position. Current assets are limited to cash of £2,417, insufficient to cover current liabilities of £2,689, resulting in negative working capital of £272. Net assets have swung from positive £3,351 in 2022 to negative £272 in 2023. The company holds no fixed assets and has no retained earnings. The decline in cash and increase in creditors reflects a worsening liquidity position. Shareholders’ funds have been fully eroded. Overall, the balance sheet is weak and does not support additional borrowing or credit risk.

3. Cash Flow Assessment:

Cash at bank has decreased by 59% from £5,966 to £2,417 in the last year. The company has no reported turnover and is incurring operating losses, which is not sustainable. There is no evidence of positive cash flow from operations or external financing. Current liabilities slightly increased, primarily due to other creditors rising from £1,515 to £2,349. Negative net working capital and declining cash reserves indicate poor liquidity and an inability to meet short-term obligations comfortably.

4. Monitoring Points:

• Turnover and revenue generation: Watch for any resumption or growth in business activities.
• Profitability trends: Monitor for a return to operating profits.
• Cash balances and working capital: Track liquidity improvements or further deterioration.
• Creditor balances: Review the ability to manage and settle current liabilities.
• Directors’ engagement and plans: Assess management’s strategy for financial recovery or restructuring.