A SQUARE VIRTUAL DESIGNS LTD

Executive Summary

A Square Virtual Designs Ltd is a micro private limited company showing early-stage growth in turnover and profitability with a clean but very small balance sheet. Its limited cash and working capital position restrict financial flexibility, making it vulnerable to liquidity pressures. Conditional credit approval is advised, with emphasis on monitoring cash flow and business performance closely.

A SQUARE VIRTUAL DESIGNS LTD - Analysis Report

Company Number: 13109352

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   A Square Virtual Designs Ltd shows growth in turnover and profitability, indicating improving trading performance. However, the absolute scale of operations is very small, current assets are minimal, and cash holdings are low, suggesting limited liquidity buffers. The company’s ability to service any significant debt would depend on maintaining and growing its revenue base. Approval is recommended with conditions including close monitoring of cash flow and profitability trends, and limits on credit exposure commensurate with its size and financial resources.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£7,800) acquired mainly in the last year, reflecting investment in office equipment or similar. Shareholders’ funds have increased to £7,819 from £3,811 the prior year, driven by retained profits. Net current assets are minimal (£19), indicating very tight working capital. The company has no reported liabilities or provisions, which means the balance sheet is clean but also shows very limited financial scale and resilience. The low share capital (£1) is typical for micro-entities but adds no buffer for creditors.

3. Cash Flow Assessment:
   Cash at bank is extremely low (£19 at year end), down from £335 the prior year, which raises concerns about short-term liquidity. The company is likely operating on a tight cash cycle, relying on continuous inflows from clients to meet immediate obligations. There is no evidence of external borrowings or credit lines, so working capital management and cash collection are critical. The small net current assets figure reinforces the limited liquidity cushion.

4. Monitoring Points:

• Turnover growth and gross margins, to ensure continued improvement in profitability.
• Cash balances and cash flow from operations, for early warning of liquidity stress.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Any increase in liabilities or credit facilities, to assess leverage and repayment capacity.
• Management changes or adverse director conduct records (none currently noted).