VISTA GLAZING LIMITED

Risk Rating: HIGH The company exhibits a concerning and sustained deterioration in its equity position. Net assets have declined from £21,091 in 2020 to just £5,565 in 2025, representing a depletion of over 73% over five years. With total liabilities (£72,779) now dwarfing the remaining equity buffer by a factor of more than 13 to 1, the company's solvency is heavily reliant on the continued forbearance of its short-term creditors.

Key Concerns: - Rapid Working Capital Erosion: Net current assets fell sharply from £25,361 in 2024 to £7,816 in 2025. This was primarily driven by a 46% surge in creditors due within one year (from £49,710 to £72,779), indicating potential cash flow constraints and an increasing reliance on short-term debt or trade credit to fund operations. - Thin Equity Buffer: Net assets of £5,565 against total assets of £80,595 provide almost no margin for operational errors or macroeconomic shocks. A relatively minor bad debt or operational loss could render the company technically insolvent. - Sustained Profitability Decline: The consistent year-on-year reduction in shareholders' funds (from £21,091 in 2020 to £5,565 in 2025) strongly suggests the company is accumulating ongoing trading losses, severely undermining long-term operational stability.

Positive Indicators: - Regulatory Compliance: The company is fully up to date with its statutory filing requirements for both annual accounts and confirmation statements, with no overdue filings recorded. - Operational Continuity: The business has maintained an active trading status for over a decade since its incorporation in 2014, and current assets remain reasonably stable at £80,595. - Reduction in Long-term Debt: Creditors falling due after more than one year decreased significantly from £11,251 to £2,251, suggesting the successful paydown or restructuring of longer-term obligations.

Due Diligence Notes: - Creditor Composition: It is critical to determine how much of the £72,779 in short-term creditors represents trade payables versus related-party or director loans. If the debt is internally held, the risk of enforced liquidation is lower. - PSC Structure: The register shows both a corporate PSC (I Glazing Ltd) and an individual (Mr Harcharan Singh Rayat) owning more than 75% of shares. The relationship and financial health of I Glazing Ltd should be investigated to understand broader group risk. - Micro-Entity Limitations: As a micro-entity, the filed accounts provide minimal transparency. There is no Profit & Loss account, cash flow statement, or debtors breakdown. Obtaining management accounts will be essential to assess actual trading profitability and cash conversion cycles.