VD DESIGN LIMITED

Executive Summary

VD DESIGN LIMITED is a young micro-entity showing healthy early-stage financial indicators with positive net assets and profitable trading. The company is financially solvent with no current liabilities but operates at a small scale with thin margins. Strategic focus on revenue growth, cost control, and management diversification will improve its financial wellness and support sustainable development.

VD DESIGN LIMITED - Analysis Report

Company Number: 14719276

Analysis Date: 2025-07-29 19:12 UTC

Financial Health Assessment for VD DESIGN LIMITED

Assessment Date: As of financial year ended 31 March 2025

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1. Financial Health Score: B- (Good but Early Stage with Caution)

Explanation:
VD DESIGN LIMITED is a very young micro-entity company with modest turnover and positive net assets. The company shows signs of healthy early-stage operations with profitable trading and no liabilities, which is promising. However, the scale of operations is still small and the financial base is thin, warranting close monitoring as the business grows.

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2. Key Vital Signs

Vital Sign	Value (2025)	Interpretation
Turnover (Revenue)	£6,492	Low but growing revenue; typical for a startup/early stage business.
Profit for the Period	£573	Positive profit indicates initial viability.
Net Assets (Shareholders' Funds)	£2,011	Positive net worth; no accumulated losses yet.
Current Assets	£2,146	Includes cash and receivables; liquidity present.
Current Liabilities	£0	No short-term debts, indicating no immediate financial stress.
Working Capital (Net Current Assets)	£2,146	Positive working capital reflects ability to cover short-term obligations comfortably.
Fixed Assets	£0	No long-term assets; typical for service/online retail start-ups.
Tax Provision	£135	Shows tax liabilities are managed and accounted for.
Employee Count	1	Sole operator or minimal staffing, cost control evident.

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3. Diagnosis: What the Financial Data Reveals about Business Health

• Healthy Cash Flow and Solvency: The company shows a "healthy pulse" with positive working capital and no current liabilities, suggesting it can meet its short-term obligations without strain. This absence of debt is a positive "symptom" of financial stability.
• Early Stage Growth: The modest increase in turnover (£5,191 to £6,492) and profit (£287 to £573) year-over-year is a "sign of life" typical of a new business finding its market footing.
• Low Asset Base: Zero fixed assets indicates the company is not capital intensive, relying on intangible assets or inventory for operations—a typical pattern for architectural and online retail activities.
• Profit Margins and Cost Structure: Cost of materials (~72% of turnover) and other charges show the business is managing costs effectively but is operating on thin margins, which is common in early-stage companies.
• Tax Compliance: Provision for tax reflects the company's ability to comply with fiscal responsibilities, a sign of sound governance.
• Single Shareholder Control: The sole director and 75-100% owner concentration means decision-making is centralized, which can be efficient but also poses risks if diversification of management or oversight is lacking.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Revenue Generation: Explore marketing and sales strategies to accelerate turnover growth beyond current modest levels, as revenue is the lifeblood for scaling.
• Build Cash Reserves: Although current assets exceed liabilities, increasing cash buffers will strengthen resilience against unforeseen expenses or slow periods.
• Consider Asset Investment: Evaluate opportunities to acquire or lease fixed assets that could improve operational efficiency or service delivery, especially in architectural activities.
• Monitor Profit Margins: Continue to control cost of materials and other charges carefully, aiming to improve profitability ratios, which are currently slim.
• Diversify Management Input: Consider appointing additional directors or advisors to bring broader expertise and oversight, reducing dependence on a single individual.
• Plan for Tax and Compliance: Maintain diligent accounting and timely filings to avoid penalties, keeping the company’s good standing "healthy."
• Explore Funding Options: If growth ambitions are significant, assess options for external financing or investment to boost working capital and support expansion.

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Medical Analogy Summary:

VD DESIGN LIMITED exhibits a steady "heartbeat" with positive net assets and no short-term liabilities, indicating financial "vital signs" are stable. However, its "growth metabolism" is slow, reflecting an early-stage patient that needs careful nurturing and stronger nutritional intake (revenue and cash reserves) to develop into a robust, mature business. Vigilance in controlling costs and strategic investment will be critical for a healthy financial prognosis.

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