VIRTUAL PIXELS CONSULTING LIMITED

Executive Summary

VIRTUAL PIXELS CONSULTING LIMITED shows financial signs typical of a healthy micro-entity start-up with positive net assets and adequate working capital. However, limited operational history and absence of profitability data mean caution is warranted. Focus should be on maintaining cash flow stability and developing profitability tracking as the company grows.

VIRTUAL PIXELS CONSULTING LIMITED - Analysis Report

Company Number: 15168190

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment for VIRTUAL PIXELS CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
Given that VIRTUAL PIXELS CONSULTING LIMITED is a newly incorporated micro-entity (less than 1 year old at reporting date), the financial data is limited but shows generally positive signs. The company has a positive net asset position, adequate working capital, and no indication of distress. However, the scale of operations is very small, and absence of profit/loss data restricts a full diagnosis. Thus, a grade B reflects a generally healthy but early-stage financial condition with some caution due to limited operating history.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,160	Minimal long-term investments, typical for a start-up.
Current Assets	53,845	Healthy short-term resources, mostly likely cash or receivables.
Current Liabilities	42,034	Short-term obligations; sizeable but covered by current assets.
Net Current Assets	11,811	Positive working capital; indicates ability to cover short-term debts.
Total Assets less Current Liabilities	13,971	Overall positive asset coverage over short-term liabilities.
Net Assets (Shareholders’ Funds)	13,971	Positive equity; indicates funding from owner or retained earnings.
Number of Employees	1	Very small scale, low overheads.

• Working Capital (Net Current Assets): £11,811 shows the company has a "healthy cash flow cushion" to meet immediate obligations.
• Net Assets: Positive and all attributable to shareholder funds, suggesting no accumulated losses at this stage.
• No Audit Required: Being a micro-entity, accounts are unaudited but comply with FRS 105, indicating basic compliance with accounting standards.

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3. Diagnosis

• Early Stage Business: The company was incorporated in late 2023 and has filed first accounts covering just over one year. This means it’s in the initial phase of its lifecycle, where financial structure is still forming.
• Financial Stability: The positive net assets and net current assets signal no symptoms of financial distress such as insolvency or liquidity strain.
• Limited Scale: With only one employee and very modest fixed assets, it is a very small operation, which is typical for a micro company. The current liabilities are relatively high compared to fixed assets but are covered by liquid assets.
• Owner Control: Mr. David Gray holds 75-100% ownership and voting rights, ensuring centralized control and decision-making, which can be an advantage for agility but also a concentration risk.
• Lack of Profit/Loss Data: The absence of a profit and loss account or detailed income statement limits insights into profitability, revenue trends, and expense management. This is a "blind spot" in the financial health examination.
• Industry Activity: The company operates in specialised design and motion picture production, sectors often requiring upfront investments and variable cash flows. The modest asset base may reflect initial project-based activity rather than capital-intensive operations.

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4. Recommendations

• Monitor Cash Flow Closely: As a start-up, maintaining "healthy cash flow" is critical. Regular cash flow forecasting will help avoid liquidity crunches.
• Build Profitability Tracking: Although exempt from audit, consider preparing internal profit and loss statements to track operational performance and detect emerging issues early.
• Manage Liabilities Prudently: Current liabilities are significant relative to asset base. Improve creditor terms or manage payables to maintain positive working capital.
• Consider Growth Investments: If business activity increases, investing in fixed assets or hiring additional staff may be necessary. Plan capital expenditures carefully to avoid overextension.
• Prepare for Next Filing: Ensure timely submission of next annual accounts and confirmation statements to avoid penalties and maintain compliance.
• Governance and Controls: Although owner-controlled, consider implementing basic governance practices to support transparency and risk management as the company grows.
• Seek External Advice: As business complexity increases, consulting with accountants or financial advisors can provide strategic insights on tax, cash management, and growth funding.

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