VIS4D LTD

Executive Summary

VIS4D LTD shows strong financial health for a first-year company with positive working capital, healthy cash reserves, and early profitability. The company's financial condition is stable with no immediate risks, though careful management of receivables and cash flow is advised to support future growth. Maintaining compliance and planning for scaling will be key to sustaining this positive momentum.

VIS4D LTD - Analysis Report

Company Number: 15212386

Analysis Date: 2025-07-29 13:41 UTC

Financial Health Assessment for VIS4D LTD

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1. Financial Health Score: A-

Explanation:
VIS4D LTD exhibits strong early-stage financial health indicators consistent with a well-managed startup in its first full accounting period. The company shows a solid equity base, positive working capital, and prudent cash management, with no overdue filings or signs of financial distress. The "A-" grade reflects robust fundamentals with room to monitor growth and operational scaling risks typical to a young enterprise.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	22,870	Healthy level of short-term assets, including cash and receivables, indicating liquidity.
Cash at Bank	14,870	Adequate cash reserves to cover immediate expenses, a sign of healthy cash flow management.
Debtors (Trade Receivables)	8,000	Amount owed by customers; manageable but should be monitored for timely collection.
Current Liabilities	5,332	Low short-term debts relative to assets, indicating modest financial obligations.
Net Current Assets	17,538	Strong positive working capital, showing the company can meet short-term liabilities comfortably.
Total Assets Less Current Liabilities	17,944	Solid net asset position reflecting a stable balance sheet structure.
Shareholders' Funds	17,944	Equity capital is strong relative to liabilities, showing owner investment and retained earnings.
Retained Earnings	17,943	Profits retained in the business indicate early profitability and reinvestment.
Share Capital	1	Minimal share capital typical for a startup; most equity growth through retained earnings.
Employee Count	1	Founder-operated, low fixed costs, but growth will require scaling workforce and expenses.
Filing Status	Up to date	No overdue accounts or confirmation statements, indicating good compliance and governance.

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3. Diagnosis

Overall Business Health:
VIS4D LTD is in the nascent stage of its lifecycle, having incorporated in October 2023 and just completed its first financial year. The financial "vital signs" suggest a "healthy heartbeat": cash reserves exceed current liabilities by nearly threefold, and working capital is strongly positive. The company has generated a profit (£20,573) in its first period, retains earnings after paying modest dividends, and has minimal debt burden.

The balance sheet is well-structured with mostly current assets, a small tangible asset base (computer equipment), and negligible liabilities. This financial snapshot reveals no symptoms of distress such as liquidity strain, excessive borrowings, or eroding equity. The single director and 100% ownership by Mr. David Gerard Davies indicate centralized control, which can be both a strength (quick decision-making) and a risk (dependency on one individual).

From a diagnostic perspective, the business shows no signs of financial infection (distress or insolvency risks). However, as a young company in artistic creation, it must watch for typical "growth pains," including scaling expenses, managing receivables, and building a broader client base to sustain cash flow health.

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4. Recommendations

To maintain and improve financial wellness, VIS4D LTD should consider the following:

• Receivables Management:
  Set clear credit terms and actively monitor debtor aging to ensure timely cash inflows. Early collection reduces liquidity risk and supports working capital.

• Cash Flow Forecasting:
  Develop regular cash flow projections to anticipate any shortfalls, especially as operations grow and expenses increase.

• Capital Structure Review:
  While current equity is strong, evaluate the need for additional funding (equity or debt) as the business scales, to avoid cash flow strain or over-reliance on owner funds.

• Operational Scaling:
  Plan for workforce expansion and operational costs prudently. Avoid rapid fixed cost increases that could strain liquidity.

• Compliance and Governance:
  Continue timely filing of accounts and confirmation statements. Consider appointing additional directors or advisors to broaden oversight.

• Profit Retention Strategy:
  Balance dividend payments with reinvestment in the business to fuel growth while maintaining financial resilience.

• Risk Management:
  Monitor industry trends in artistic creation to adapt business strategy and diversify revenue streams.

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Summary using Medical Analogy

VIS4D LTD currently displays a robust cardiovascular system—strong cash flow ("healthy blood circulation"), solid equity ("strong bones"), and manageable liabilities ("low cholesterol"). No signs of financial distress ("no fever or infection") are detected. However, as a young "patient," ongoing monitoring and proactive management are essential to ensure continued vitality and prevent future "illness" as the company grows.

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