Company Number: 14356349

Analysis Date: 2025-07-29 16:39 UTC

1. Risk Rating: MEDIUM
   Vision Illumination Limited shows some signs of financial strain, particularly in liquidity, but remains operational with no overdue filings or governance concerns. The limited equity base and negative net current assets in the latest year indicate moderate solvency risk.

2. Key Concerns:

• Negative Net Current Assets (Working Capital Deficit): The company’s working capital fell from a slight positive (£394) in 2023 to a negative figure (–£5,264) in 2024, which could indicate cash flow pressure in meeting short-term obligations.
• Declining Cash and Debtor Balances: Cash decreased significantly from £26,063 to £15,151, and trade debtors reduced from £37,760 to £20,175, suggesting potential collection issues or reduced sales volume.
• Trade Creditors Spike: Trade creditors increased markedly from £600 to £20,589 in 2024, which may reflect stretched payment terms or delayed supplier payments that could impact supplier relationships and operational continuity.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements; filings are up to date, reflecting good regulatory compliance.
• Stable Shareholders’ Funds: Despite the liquidity challenges, net assets and shareholders’ funds remain positive and stable (£1,544 in 2024 vs £1,488 in 2023), indicating some retained earnings and capital buffer.
• Experienced Leadership: Directors have been in place since incorporation and control significant shares, suggesting stable governance and aligned interests.

4. Due Diligence Notes:

• Examine Cash Flow Statements and Debtor Aging: To assess the quality and timing of cash inflows and understand if the decrease in cash and debtors relates to operational slowdown or collection inefficiencies.
• Investigate Increase in Trade Creditors: Clarify if this is due to extended payment terms, supplier disputes, or timing differences in payments, which could affect supplier confidence.
• Review Profit and Loss Details: As profit and loss account is not publicly filed, request underlying profitability data to assess operational sustainability and margin trends.
• Assess Impact of Provisions: The company holds a provision of £301; details should be reviewed to understand any contingent liabilities or risks.

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