VIVI IT LTD

Executive Summary

VIVI IT Ltd is a small-scale IT consultancy that has recovered from prior financial losses to report modest positive net assets and net current assets in its latest accounts. While the company complies with filing requirements and shows some operational stability, liquidity concerns arise from very low cash reserves and dependence on a single director/employee. Further due diligence on cash flow, debtor quality, and operational resilience is recommended to fully assess risk exposure.

VIVI IT LTD - Analysis Report

Company Number: 13197716

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: MEDIUM
   Justification: VIVI IT Ltd shows modest positive net assets and net current assets in the latest two financial years, indicating some solvency and working capital adequacy. However, the company’s overall financial scale is very small with limited cash reserves and a history of prior losses that reduced net assets significantly in 2022. The limited share capital and single employee also point to a small, potentially vulnerable operational base.

2. Key Concerns:

• Low Cash Holdings: Cash dropped from £2,724 in 2024 to £678 in 2025, which could constrain liquidity and operational flexibility.
• Historical Negative Net Assets: The company had a net deficit of £8,579 in 2022, signaling a prior period of financial distress before recovering modestly.
• Single Director and Employee: Operational dependency on one individual (director also acting as sole employee) increases risk of disruption and limits management bandwidth.

3. Positive Indicators:

• Improved Net Current Assets and Net Assets: Recovery to positive net current assets (£2,328) and net assets (£2,328) in 2025 suggests the company has stabilized its financial position.
• Timely Filing and Compliance: No overdue accounts or confirmation statements; filings are current and compliant with Companies House deadlines.
• Consistent Accounting Policies and Reporting: Accounts prepared under FRS 102 Small Entities regime with no material departures, indicating standard and reliable accounting treatments.

4. Due Diligence Notes:

• Investigate the cash flow trends and working capital management to understand the cause of cash reduction and potential liquidity risks.
• Review the breakdown and collectability of debtors (£3,665 in 2025) as they represent a significant portion of current assets.
• Assess the operational model and reliance on the sole director/employee, including contingency planning for management continuity.
• Confirm the nature and sustainability of revenue streams given the IT consultancy SIC code and the very modest scale of operations.
• Examine any potential contingent liabilities or off-balance sheet risks not disclosed in abbreviated accounts.