VIBE INTEGRATED CREATIVE LIMITED

Executive Summary

Vibe Integrated Creative Limited is currently exhibiting high financial risk due to negative net assets and a significant liquidity shortfall, despite directors’ optimistic outlook. The company’s ability to meet short-term obligations is questionable, and the large creditors’ balance requires further analysis. While regulatory filings are up to date, investors should exercise caution and seek detailed operational and cash flow information before considering exposure.

VIBE INTEGRATED CREATIVE LIMITED - Analysis Report

Company Number: 13122776

Analysis Date: 2025-07-20 12:24 UTC

1. Risk Rating: HIGH

Justification: The company’s latest financial statements show significant net current liabilities of £28,025 and negative net assets of the same amount, indicating insolvency on a balance sheet basis. The current liabilities (£60,153) exceed current assets (£32,128) by a considerable margin. Cash holdings are negligible (£11), suggesting liquidity constraints. Although the directors assert a going concern basis, the financial data points to a high risk of inability to meet short-term obligations.

2. Key Concerns:

• Solvency: Negative net assets and net current liabilities indicate the company is balance sheet insolvent.
• Liquidity: Extremely low cash reserves (£11) versus high short-term liabilities raises serious cash flow concerns.
• Creditor Exposure: A large proportion of creditors are classified as “Other Creditors” (£48,041), which warrants further scrutiny regarding the nature and terms of these liabilities.

3. Positive Indicators:

• The company is current on statutory filings (accounts and confirmation statements), indicating regulatory compliance.
• Directors report experiencing good sales growth and profitability, though this is not yet reflected in the financial position.
• The company employs a small number of staff (average 2), which may allow for flexible cost management.

4. Due Diligence Notes:

• Verify the composition and age of “Other Creditors” to assess if liabilities are overdue or subject to dispute.
• Review cash flow forecasts and management accounts for post-reporting date periods to assess operational cash generation.
• Investigate the debtor base (£32,117) to confirm collectability and reduce risk of bad debts.
• Assess directors’ plans and evidence supporting the going concern assumption, given the weak financial position.
• Confirm no undisclosed contingent liabilities or legal claims that could worsen financial distress.