VOLT PER OCTAVE LTD

Executive Summary

Volt Per Octave Ltd is a very small, newly formed micro-entity with minimal financial resources and no trading history beyond its first year. While current liquidity is positive, the company’s ability to service debt is unproven and highly dependent on future trading performance. Conditional credit approval is recommended, contingent on evidence of business growth and improving financial strength in the next 12 months.

VOLT PER OCTAVE LTD - Analysis Report

Company Number: 14803643

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Volt Per Octave Ltd is a newly incorporated micro-entity with limited financial history and a very modest asset base (£300 net assets). The company's ability to service debt is currently constrained by its minimal working capital and lack of trading track record. However, there are no overdue filings or compliance issues, and the directors appear to have direct control and involvement. Credit approval should be conditional on receipt of updated financials in 12 months showing positive cash flow generation and an increase in net assets or retained earnings.

2. Financial Strength:
   The balance sheet at 30 April 2024 shows total net assets of £300, representing a very small equity base. Current assets (£347) exceed current liabilities (£47), resulting in positive net current assets of £300, indicating short-term liquidity is intact but very limited. The company has no fixed assets or long-term liabilities reported. As a micro-entity with just one employee (the director), the financial scale is extremely small and vulnerable to operational risk.

3. Cash Flow Assessment:
   Cash and working capital are minimal, with current assets dominated presumably by cash or receivables at £347. The company’s liquidity position allows it to meet immediate liabilities, but there is no evidence of significant cash flow generation or reserves. Given the company’s infancy, cash flows are likely dependent on initial capital contributions and early trading, which should be monitored closely to ensure ongoing solvency.

4. Monitoring Points:

• Track subsequent annual accounts for growth in net assets and profitability.
• Monitor cash flow statements and working capital changes to assess operational cash generation.
• Watch for any increase in liabilities or delayed filings that could indicate financial stress.
• Review director and shareholder actions for evidence of capital injections or business development.
• Confirm ongoing trading status and client/customer base expansion in the sound recording and music publishing sector.