Company Number: 13239395

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Virtual Soho Limited is a relatively young private limited company operating in the niche post-production segment of the film industry. While it shows modest net asset growth and seems to have shareholder backing, it currently reports net current liabilities and no cash at bank, with an overdraft facility in use. The directors have confirmed support from related parties to maintain solvency, indicating dependence on external funding. Credit can be extended conditionally, provided continuous monitoring of liquidity and working capital is maintained, and assurances on ongoing shareholder support are verified.

2. Financial Strength:
   The company’s net assets improved from £28.5k in 2023 to £53.0k in 2024, primarily driven by an increase in the share premium account (£451k to £581k) reflecting capital injections. Tangible fixed assets remain stable at £114k. However, the balance sheet shows net current liabilities of £61k, though this is an improvement from £97k the prior year. The company’s equity base is small but positive. The profit and loss reserves are significantly negative (-£528k) indicating accumulated losses, which is typical for a startup phase business but a risk factor for credit extension.

3. Cash Flow Assessment:
   Cash at bank was zero at the last reporting date (down from £9.2k), offset by an overdraft of £11.3k. Current liabilities include £60.4k accruals and deferred income, and other creditors at £15.6k, showing short-term obligations are significant. Debtors stand at £33.8k, slightly down from last year. The company’s working capital position is weak, with ongoing negative net current assets, indicating liquidity pressure. Reliance on shareholder funding to meet obligations is noted, and operating cash flow generation appears limited or negative.

4. Monitoring Points:

• Liquidity position: Monitor cash balances and overdraft usage monthly.
• Working capital management: Track debtor collections and creditor payments closely.
• Shareholder support: Confirm ongoing availability of funds or capital injections from controlling shareholder (Mr. Greenhill).
• Profitability trends: Watch for reduction in accumulated losses and movement toward operational break-even.
• Filing compliance: Maintain timely filing of accounts and confirmation statements to avoid regulatory risk.