VIMART DESIGN LTD

Executive Summary

VIMART DESIGN LTD shows signs of emerging liquidity stress and declining equity as of its most recent accounts, despite maintaining compliance and a positive cash balance. The company’s working capital deficit and increased short-term creditors warrant close monitoring and further financial analysis to determine operational viability and risk exposure. Investors should conduct detailed cash flow and creditor analysis to gauge near-term solvency and business sustainability.

VIMART DESIGN LTD - Analysis Report

Company Number: 12913827

Analysis Date: 2025-07-29 18:56 UTC

1. Risk Rating: MEDIUM

Justification: The company exhibits a modest net asset base and a recent deterioration in working capital, with current liabilities exceeding current assets in the latest financial year. While still active and compliant with filing requirements, the negative net current assets and small shareholder funds suggest potential short-term liquidity pressures.

2. Key Concerns:

• Liquidity risk: Current liabilities (£17,370) exceed current assets (£15,656) in 2024, resulting in negative net working capital (-£1,714), a reversal from positive net current assets in prior years.
• Declining net assets: Shareholders’ funds have decreased significantly from £1,124 in 2023 to £181 in 2024, indicating erosion of equity.
• Increasing short-term creditors: Trade creditors and other short-term liabilities have more than doubled compared to the prior year, raising concerns about the company's ability to meet obligations timely.

3. Positive Indicators:

• Compliance: All statutory accounts and confirmation statements are up to date, with no overdue filings noted.
• Stable director presence: No disqualifications or regulatory issues reported for the director.
• Modest tangible fixed assets (£1,895) potentially supporting operational activities.
• Increment in cash balance from £6,612 to £14,836, which may support short-term liquidity needs despite overall negative working capital.

4. Due Diligence Notes:

• Investigate reasons for the sharp increase in current liabilities, particularly the "Other creditors" component which rose to £12,146.
• Assess the company's cash flow statements and management accounts for recent months to understand actual liquidity and operational cash generation.
• Review turnover, profitability, and contract status since 2024 year-end to evaluate operational sustainability and whether the equity erosion is a temporary or ongoing issue.
• Clarify the nature of revenues given the multiple SIC codes including education support, design, publishing, and online retail, to understand business model stability.
• Confirm whether there are any contingent liabilities or off-balance sheet exposures not disclosed in the filleted accounts.