VISITONE LIMITED

Executive Summary

Visitone Limited is an early-stage software development company currently showing significant liquidity and solvency weaknesses with negative net assets and working capital deficits. The company’s financials indicate high risk and limited ability to service debt or credit facilities at this time. Lending is not recommended until there is clear evidence of improved trading performance and strengthened financial position.

VISITONE LIMITED - Analysis Report

Company Number: 14806276

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: DECLINE
   Visitone Limited is a newly incorporated company (April 2023) with only one financial year of trading. The latest accounts to 31 March 2024 reveal significant net liabilities (£19,553) and negative working capital (£18,915), indicating liquidity stress. Current liabilities exceed current assets by a substantial margin, suggesting inability to meet short-term obligations without additional funding. The company’s negative shareholders’ funds and net current liabilities undermine its capacity to service debt or honor commercial credit. There is no evidence yet of profitable trading or cash flow generation, and its sole director holds full control, which concentrates risk. Given these financial weaknesses and the early stage of the business, credit exposure is high and unsecured lending is not recommended.

2. Financial Strength:
   The balance sheet shows fixed assets of £4,682 (mostly intangible assets amortized to £3,382 and plant & machinery net £1,300), but these are modest in scale relative to liabilities. Current assets total £15,118, including cash balances of £10,053, but this is insufficient to cover current liabilities of £34,033. The company has accrued income/prepayments of £4,553, but these do not offset creditor pressure. The equity position is negative with retained losses of £20,553, reflecting initial losses typical of startup costs. The absence of tangible net worth and the large creditor balance point to weak financial resilience.

3. Cash Flow Assessment:
   The company’s cash holdings of £10,053 provide some immediate liquidity, but the large current liabilities create a working capital deficit of nearly £19k. The negative net current assets suggest ongoing cash flow challenges to meet creditor demands. No statement of income was provided, but the absence of profits and the negative equity imply that cash burn is occurring. Dependence on shareholder funding or external capital injection is likely to remain critical. There is limited visibility on incoming cash flows or debtor collection, as trade debtors are minimal at £512.

4. Monitoring Points:

• Improvement in working capital and net current assets through increased cash generation or reduction in payables.
• Evidence of revenue growth and profitability in subsequent periods to move towards positive retained earnings.
• Regular monitoring of creditor ageing and ability to meet statutory payments (tax, social security).
• Watch for director changes or introduction of additional capital to strengthen equity base.
• Timely filing of accounts and confirmation statements to avoid regulatory risks.