Company Number: 08235742

Analysis Date: 2025-09-29 13:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Visual Print and Design Limited demonstrates an established operational history since 2012 with a moderate asset base primarily supported by revalued property assets. However, recent financials reveal deteriorating liquidity with a net current liability position as at March 2024 (£-17,282), signaling potential short-term cash flow strains that may impact their ability to service current liabilities without additional cash inflows or refinancing. The company's secured bank loans representing a significant portion of liabilities are backed by property, adding creditor security, but the bounce back loan and director loans increase leverage. The decline in net assets from £168,799 in 2023 to £114,274 in 2024 and erosion of working capital warrants close monitoring and suggests prudent lending terms and covenant controls if credit is granted.

2. Financial Strength: The balance sheet remains asset-rich with fixed assets valued at £305,713, largely comprising freehold property revalued at fair market value. However, shareholder funds have decreased notably in the latest year, from £168,799 to £114,274. The company holds secured debts amounting to approximately £186,452, including BounceBack Loan and a secured bank loan on property, indicating medium financial risk. The director’s loan balance of about £65,669 is unsecured but currently repayable on demand, presenting a potential contingent liability. Overall, the equity base is modest and shrinking, reflecting marginal financial strength.

3. Cash Flow Assessment: Current cash holdings are low (£18,662) and have only slightly increased from the prior year (£13,041), but current liabilities have increased to £247,239, leading to negative net working capital. Debtors remain substantial (£205,050), indicating a dependency on timely collection to sustain liquidity. The historical trend shows fluctuating liquidity positions but the recent movement to a net current liability position could pressure working capital adequacy and operational cash flow. Cash flow from operations and debtor collection efficiency are key metrics to focus on.

4. Monitoring Points:

• Track debtor collection periods to prevent further liquidity deterioration.
• Monitor covenant compliance related to secured facilities, particularly as net asset value and working capital weaken.
• Watch for changes in director loan balances and repayment patterns.
• Assess impact of increasing interest rates on debt servicing costs, especially on the BounceBack loan and bank loans.
• Keep an eye on any unusual fluctuations in current liabilities or creditor days.