PALETTE PROJECTS LIMITED

Executive Summary

Palette Projects Limited is an early-stage micro-entity operating within the artistic creation and specialised design sectors. Its initial financials reflect typical start-up characteristics, including negative net assets and minimal operational scale. Positioned in a competitive and evolving creative market, the company’s future prospects depend heavily on client acquisition and scaling its bespoke design services.

PALETTE PROJECTS LIMITED - Analysis Report

Company Number: 14811590

Analysis Date: 2025-07-29 13:56 UTC

1. Industry Classification
   Palette Projects Limited operates primarily within the "Artistic creation" sector (SIC 90030), alongside activities classified under "Other professional, scientific and technical activities not elsewhere classified" (SIC 74909) and "Specialised design activities" (SIC 74100). This places the company within the creative and professional services industries, which are characterised by intensive use of intellectual property, bespoke project execution, and a reliance on skilled creative professionals. These sectors often exhibit high variability in revenue streams due to project-based work and a strong dependence on client relationships and reputation.

2. Relative Performance
   As a micro-entity incorporated in April 2023, Palette Projects Limited shows financials typical of an early-stage start-up within the creative sector. The company reported nominal current assets (£1) against current liabilities of £12, resulting in net current liabilities and net liabilities of £11. This negative equity position is not unusual for a company in its first year of trading, especially in project-driven creative fields where initial investment and setup costs may precede significant revenue generation. With only one employee (the director), operational scale is minimal, consistent with micro-entity status. Compared to industry benchmarks, larger established firms in artistic creation or specialised design typically demonstrate positive net assets and working capital, reflecting ongoing contracts and operational maturity. However, early-stage creative companies often report initial losses as they build their client base and portfolio.

3. Sector Trends Impact
   The artistic creation and specialised design sectors are currently influenced by several market dynamics:

• Increasing digitalisation and demand for innovative multimedia content and design solutions.
• Growing client preference for bespoke, sustainable, and culturally resonant creative outputs.
• Competitive pressure from freelancers and small agencies leveraging flexible, low-overhead business models.
• Potential vulnerability to economic fluctuations that affect discretionary spending on creative projects.
  Given these trends, Palette Projects Limited’s small size and nascent stage could be advantageous in agility but challenging in scaling and securing long-term contracts. The company’s positioning in London, a global creative hub, offers access to a rich client network but also intense competition from well-established players.

4. Competitive Positioning
   Palette Projects Limited is a niche micro-entity player, led and fully controlled by a single director/shareholder. This structure enables quick decision-making and low administrative overheads but limits capacity for large-scale projects or diversification without additional resources. The company’s initial negative net asset position is typical at this stage but highlights the need for capital infusion or revenue growth to reach financial stability. Compared to typical competitors—ranging from sole traders to small design studios with slightly larger teams—Palette Projects has yet to establish significant financial or operational scale. Its success will depend on acquiring repeat clients, building a distinctive creative portfolio, and navigating the competitive London market where reputation and network effects are critical.