THREE PIXEL SQUARE LIMITED

Executive Summary

Three Pixel Square Limited is a newly incorporated micro-entity with very limited financial resources but maintains compliance with filing requirements and shows marginal improvement in net assets. While solvent, the company’s financial scale and cash position are fragile, restricting its ability to service significant credit. Credit facilities should be cautiously granted on a short-term basis with vigilant liquidity monitoring.

THREE PIXEL SQUARE LIMITED - Analysis Report

Company Number: 13884655

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Three Pixel Square Limited is a micro-entity in the artistic creation sector, with limited financial scale and modest net assets (£2,129 as of 29 Feb 2024). The company shows a small but positive net current asset position and no overdue filings, indicating compliance and minimal operational risk. However, given the very low asset base and the fact it has no employees and no fixed assets, the company’s capacity to service debt or absorb financial shocks is limited. Credit approval should be conditional on low-risk, short-term lending or trade credit with close monitoring of cash flow and operational activity.

2. Financial Strength:
   The balance sheet reflects a very small equity base, increasing slightly from £1,583 to £2,129 over the last year. The company holds only current assets (£2,129) and no fixed assets, and current liabilities are minimal or non-existent as per the latest accounts. The net current assets position is positive but marginal, indicating limited working capital cushioning. The company is solvent but financially fragile, with no signs of significant capital investment or earnings retention.

3. Cash Flow Assessment:
   The absence of employees and minimal current assets point to a lean operation with likely low cash burn. However, details on cash balances or detailed cash flow statements are not provided, so liquidity is presumed tight. The company’s ability to generate or access cash beyond the reported current assets is uncertain. Working capital is positive but minimal, so any significant delay in receivables or increase in payables could strain liquidity.

4. Monitoring Points:

• Track liquidity closely, especially cash balances and receivables turnover.
• Monitor any increase in current liabilities or fixed asset acquisitions which could affect cash flow.
• Observe changes in shareholders’ funds for signs of capital injections or erosion.
• Confirm ongoing operational activity and revenue generation to support debt servicing.
• Watch for director changes or unusual transactions indicating business distress.