VISUAL TRENDS LTD

Executive Summary

Visual Trends Ltd exhibits strong financial health characterized by solid liquidity, growing equity, and efficient management of liabilities, typical of a well-managed micro IT consultancy. While the company operates with minimal fixed assets and a lean team, it maintains a stable foundation for growth. Maintaining robust cash flow and planning for scale will be critical to sustain and enhance financial wellness going forward.

VISUAL TRENDS LTD - Analysis Report

Company Number: 13841325

Analysis Date: 2025-07-19 13:04 UTC

Financial Health Assessment: VISUAL TRENDS LTD

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1. Financial Health Score: B+

Explanation:
Visual Trends Ltd demonstrates solid financial stability typical of a healthy micro-entity. The company shows consistent growth in net assets and strong working capital improvements over the last three financial years, indicating effective management of current assets and liabilities. However, the small asset base and limited employee count suggest moderate scale and potential vulnerability to external shocks, which keeps the rating from an 'A'.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	1,980	2,475	Very low; typical for micro IT consultancy — minimal investment in equipment.
Current Assets	100,831	94,686	Healthy and increasing cash and receivables, which supports liquidity.
Current Liabilities	28,222	51,750	Significantly reduced, indicating better short-term debt management.
Net Current Assets	72,609	42,936	Strong positive working capital, a "healthy pulse" for daily operations.
Net Assets (Equity)	74,085	45,027	Increasing equity reflects retained earnings and company growth.
Employee Count	1	1	Very lean operation, limiting operational complexity but also scale.

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3. Diagnosis: Financial Condition Overview

Visual Trends Ltd displays the "vital signs" of a financially healthy start-up or micro business in the IT consultancy sector. The company maintains a robust liquidity position with net current assets nearly tripling since 2022 and a marked reduction in current liabilities, suggesting improved creditor management or debt repayment. The increase in net assets and shareholders' funds signals accumulation of retained profits, a good indicator of profitability and prudent financial management.

The low fixed asset base is typical for an IT consultancy, which tends to be service-driven rather than capital intensive. The single employee count aligns with a micro company profile, meaning operational risks are concentrated but overheads are low.

No symptoms of financial distress such as overdue filings, negative working capital, or declining equity are present. The absence of audit requirements under micro-entity provisions reduces administrative burden but limits the depth of external financial scrutiny.

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4. Recommendations

• Maintain Strong Liquidity: Continue to monitor working capital closely to preserve the "healthy cash flow" necessary for operational flexibility and to guard against unforeseen expenses.

• Plan for Scale: Consider strategic investment in fixed assets or human capital to support growth beyond the micro category, which may improve market competitiveness and revenue streams.

• Risk Management: Given the lean structure, ensure adequate contingency planning to mitigate risks from dependence on a single director and limited employee base.

• Financial Reporting: Although audit exemption applies, consider periodic internal financial reviews or external advisory inputs to ensure accuracy and readiness for potential business scaling.

• Diversification of Income: Explore new client segments or service offerings to reduce vulnerability to sector-specific downturns.

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