VIBES ON VIBES LTD

Executive Summary

VIBES ON VIBES LTD is a newly incorporated micro-entity with no recorded financial activity as of April 2024, indicating it is still in its startup phase with no revenue generation yet. The company shows no financial distress but also no growth signals, with a flat balance sheet and four employees suggesting operational setup underway. Immediate focus should be on generating revenue and building positive cash flow to transition from a dormant financial state to a healthy, sustainable business.

VIBES ON VIBES LTD - Analysis Report

Company Number: 14811685

Analysis Date: 2025-07-29 14:13 UTC

Financial Health Assessment for VIBES ON VIBES LTD

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1. Financial Health Score: D

Explanation:
The company is in a very early stage, with zero recorded assets, liabilities, or equity as of the last reporting date. This results in a neutral but inactive financial profile. While there are no negative balances or debts, the absence of any financial activity or resources indicates the business is not yet generating operational momentum or financial strength. This grade reflects a "dormant" or "startup" state rather than a mature healthy business.

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2. Key Vital Signs: Core Metrics and Interpretation

Metric	Value (£)	Interpretation
Fixed Assets	0	No investment in long-term assets; typical for a new micro company.
Current Assets	0	No cash, receivables, or stock; suggests no trading or operational activity yet.
Current Liabilities	0	No short-term debts; no financial obligations recorded.
Net Current Assets	0	Neutral working capital; neither positive nor negative liquidity.
Total Net Assets (Equity)	0	No shareholder funds or retained earnings; company has not built equity.
Number of Employees	4	Indicates some operational activity despite zero financials.

Vital Signs Analysis:
The company’s financial "vitals" show no recorded assets or liabilities, producing a flatline on the balance sheet. The presence of 4 employees suggests operational intent, but without financial backing or turnover reported, the business is essentially in a pre-revenue or setup phase. This is akin to a patient who has just been admitted and is stable but has yet to show signs of growth or distress.

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3. Diagnosis: What the Financial Data Reveals

• Startup Phase: The company was incorporated in April 2023 and filed its first micro-entity accounts ending April 2024. The accounts show zero financial activity, which is typical of a newly formed business that may not have started trading or has minimal transactions below reporting thresholds.
• No Signs of Financial Distress: There are no liabilities or overdrafts, so there are no immediate financial symptoms of distress such as high debts or negative working capital.
• Lack of Financial Growth: However, the absence of assets or revenue indicates no growth or cash inflow. This "flatline" financial position means the company has yet to prove its business model or generate income.
• Operational Potential: Having four employees suggests the company is investing in human resources, indicating plans to activate operations soon.

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4. Recommendations: Actions to Improve Financial Wellness

• Initiate Revenue Generation: Focus on converting operational setup into actual sales or service delivery to build up current assets and cash flow. Healthy cash flow is vital to avoid financial shock and sustain employee costs.
• Maintain Rigorous Financial Record-Keeping: Ensure all transactions are recorded accurately to avoid future compliance issues. Early financial discipline helps diagnose problems early.
• Monitor Working Capital: As trading begins, keep a close watch on current assets vs current liabilities to maintain positive liquidity, avoiding symptoms like cash shortages.
• Plan for Asset Investment: Consider acquiring some tangible or intangible fixed assets (equipment, licenses) to build the company’s asset base, which supports borrowing capacity and shareholder confidence.
• Regular Financial Review: Conduct frequent reviews of financial statements to detect early signs of financial stress or opportunities for improvement.

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