Company Number: 13551171

Analysis Date: 2025-07-20 13:57 UTC

1. Credit Opinion: APPROVE
   Virgo Star IT Ltd demonstrates a strong balance sheet with significant growth in net assets and fixed assets over the last two years. The company maintains healthy working capital with net current assets increasing substantially. There is no indication of overdue filings or director misconduct. The substantial equity base and absence of liquidity concerns support an approval for credit facilities, subject to normal lending conditions.

2. Financial Strength:
   The company’s net assets have grown from £580,001 in 2022 to £1,542,067 in 2023, indicating a strong capital base. Fixed assets increased markedly from £475,000 to £1,420,795, suggesting investment in long-term resources. Total liabilities after one year stand at £227,602 which is moderate relative to the total net assets, reflecting low gearing. The balance sheet shows a solid financial position with a strong equity buffer.

3. Cash Flow Assessment:
   Current assets increased from £215,001 to £533,337 while current liabilities rose moderately from £110,000 to £184,463. This results in a net current asset position of £348,874, up from £105,001, indicating improved liquidity and working capital management. The company employs 7 staff versus 2 previously, implying operational growth which appears well-supported by current liquidity levels.

4. Monitoring Points:

• Continued growth in fixed assets should be monitored for potential impact on cash flow and depreciation.
• Watch trade creditors and short-term liabilities to ensure they remain well covered by current assets.
• Monitor profitability and cash generation trends to confirm ongoing ability to service debt.
• Keep an eye on any changes in director appointments or PSC status that might affect governance.