Risk Assessment: Decision Vision Ltd (07043157)

Company profile: Private limited company, incorporated October 2009, IT consultancy (SIC 62020), Nottingham-based, 33 employees, two directors (R. Xxxxxxxname shown to subscribers, B. Xxxxxxxname shown to subscribers), PSC: Xxxxxx Xxxxxxxxname shown to subscribers. Files under the small companies regime (unaudited, filleted accounts).

1. Risk Rating: HIGH

The company is balance-sheet insolvent, with net liabilities of £123,406 at 31 October 2025 — a threefold deterioration from £40,280 the prior year. The working capital position is negative and worsening (net current liabilities of £171,872; current ratio of approximately 0.66), cash has fallen 27% year-on-year to £50,112, and trade creditors have risen 82% to £329,646. The company appears to be funding operations through supplier credit and creditor forbearance rather than internally generated liquidity. Continued solvency depends on ongoing trading performance and the support of creditors — none of which is evidenced in the filed accounts.

2. Key Concerns

a) Balance-sheet insolvency with an accelerating deterioration. Shareholders' funds moved from +£23,871 (FY2023) to −£40,380 (FY2024) to −£123,506 (FY2025). The movement in the P&L reserve implies losses of approximately £64k in FY2024 and £83k in FY2025 (assuming no dividends; actual losses would be larger if distributions were made). No going concern disclosure is evident in the extracted accounts, which is a notable omission for a company reporting net liabilities — though the extracted text may be incomplete.

b) Severe liquidity strain. Cash of £50,112 (down from £118,163 in FY2022) sits against current liabilities of £503,986, including £161,639 of taxation and social security (if this represents HMRC arrears rather than normal accruals, this is a critical solvency trigger) and trade creditors that grew from £181,481 to £329,646 in a single year. The 82% increase in supplier balances strongly suggests payment stretching to preserve cash. Trade debtors of only £12,924 indicate the problem is not collections but underlying cash generation.

c) Related-party exposure and opaque intercompany flows. Of £262,979 in "other debtors," at least £124,120 is due from commonly-owned entities: £113,571 from Service Contracts Ltd (nil prior year) and £10,549 from Point Four Selfserve Ltd (which owed £178,169 in FY2024). Balances across the related-party network (which also includes Instore Location LLP, Appy Shop Ltd, and CAB Ventures Ltd) have swung dramatically year-on-year, with offsetting movements in other creditors. Recoverability of these receivables depends entirely on the unobservable financial health of related entities. Contingent liabilities of £11,667 (FY2024: £67,833) are of undisclosed nature.

Historical context warranting attention: FY2018 showed total assets of £2.63M and net assets of £1.37M; by FY2019 net assets were −£79,403 — an unexplained collapse of approximately £1.5M. The company was also in negative equity in FY2016. This pattern indicates recurring episodes of financial distress and raises questions about historical asset quality and capital allocation.

3. Positive Indicators

• Longevity and operational continuity: 16 years of trading; stable headcount of 33 employees across FY2024–FY2025 suggests an ongoing operating business, not a shell.
• Regulatory compliance is current: No overdue accounts or confirmation statements; no disqualification records appear against the directors.
• Deleveraging of formal debt: The Bounce Back Loan is nearly fully repaid (£6,166 remaining, due within one year) and bank loans/overdrafts are nil at year end.
• Contingent liabilities reduced from £67,833 to £11,667.
• Demonstrated recovery capacity: The company returned to positive equity after the FY2016 and FY2019 deficits, indicating it has previously traded through distressed balance sheets.
• Minimal customer credit risk: Trade debtors are modest and well-controlled.

4. Due Diligence Notes

1. Obtain the full profit and loss account (filleted from the public record) to establish turnover, margins, and the actual FY2025 loss/dividend position.
2. Clarify the £161,639 taxation and social security creditor: current accruals vs. arrears; existence of any HMRC Time to Pay arrangement.
3. Age the £329,646 trade creditor balance: identify stretched or disputed suppliers, and any risk of supply withdrawal or statutory demands.
4. Assess the related-party network: obtain accounts for Service Contracts Ltd, Point Four Selfserve Ltd, and other connected entities; test recoverability of the £113,571 receivable and understand the near-total reversal of the Point Four balance (£178k to £10k).
5. Establish the going concern basis: whether directors have prepared cash flow forecasts supporting continued trading, and whether related parties are providing informal support.
6. Investigate the FY2018–19 asset collapse: what constituted the £2.63M asset base and the nature of the subsequent write-off or disposal.
7. Check for charges, CCJs, and winding-up petitions (not included in the provided data), and note that accounts were signed 24/07/2026 — days before the filing deadline — which may indicate difficulty finalizing the numbers.
8. Note the aging asset base: no tangible fixed asset additions in FY2025; computer equipment NBV fell 38%, relevant to an IT business's operational capacity.

Data limitations: Accounts are unaudited and filleted (no P&L), prepared under FRS 102 Section 1A. Profitability figures above are inferred from reserve movements and should be verified against full statutory accounts.

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