BACIU VASILE LTD

Executive Summary

BACIU VASILE LTD is a newly established micro company operating in freight transport, showing modest profitability but very limited turnover and cash reserves. While currently stable without distress signals, the company’s financial health is fragile due to minimal scale and liquidity. Focused efforts to grow revenue, control costs, and build cash reserves are recommended to strengthen its financial resilience and support future growth.

BACIU VASILE LTD - Analysis Report

Company Number: 13868263

Analysis Date: 2025-07-29 16:06 UTC

Financial Health Assessment for BACIU VASILE LTD

---

1. Financial Health Score: D

Explanation:
The company is in its infancy (incorporated in 2022) with minimal financial activity and very modest profitability. While it is not showing distress signals such as losses or negative net assets, the scale of operations is extremely limited, and cash reserves are minimal. This reflects a fragile financial state, akin to a patient with a mild condition but very low vitality reserves. Improvements are needed to strengthen the financial foundation.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	37,923	Very low revenue indicating a micro-scale operation; limited market penetration or business volume.
Gross Profit	33,331	Positive gross profit margin (~88%), showing cost control on direct expenses.
Operating Profit	127	Barely profitable after administrative expenses; operating margin close to zero.
Net Assets	227	Positive but extremely low net assets suggest limited financial cushion.
Cash and Current Assets	127	Very low liquidity, indicating a fragile cash position—no buffer for unexpected expenses.
Intangible Assets (Goodwill)	100	Small intangible asset base; no depreciation/amortisation charged yet.
Employees	0	No employees on record, possibly owner-operated or subcontracted services.
Shareholders Funds	227	Equity equals net assets, reflecting no debt but minimal capital invested.

---

3. Diagnosis: Financial Condition Analysis

BACIU VASILE LTD is a micro private limited company operating in freight transport by road with a single director and a sole owner controlling 100% of shares. The company’s financial "vital signs" suggest it is in a nascent stage of development, with a thin profit margin and very limited capital base.

• The positive gross margin indicates the core business model is viable at the operational level (healthy "heart function").
• Operating profit is negligible, indicating that overhead/admin costs nearly consume all gross profit, leaving little room for reinvestment or contingency (symptom of financial frailty).
• Cash holdings and net current assets are minimal, which means the company has little liquidity "blood flow" to support day-to-day operations or absorb shocks.
• No employees suggest either an owner-run or subcontracted business with potentially limited scalability.
• The intangible asset recorded as goodwill is small and not yet amortised, indicating limited investment in non-physical assets.
• The company is compliant with filing deadlines and shows no overdue accounts or returns, which is a positive sign of administrative health and governance.

Overall, BACIU VASILE LTD’s financial health is fragile but stable — it has no visible distress signals like losses or negative equity but operates at a minimal scale with very limited financial reserves. This is akin to a patient recovering from initial illness but still vulnerable to stressors.

---

4. Recommendations for Financial Wellness Improvement

1. Increase Revenue Base:
   Explore ways to grow turnover beyond current minimal levels, such as expanding client base, marketing, or diversifying service offerings. Healthy revenue growth is essential to build a robust financial foundation.

2. Control Administrative Costs:
   Review overhead and administrative expenses carefully to improve operating margins. Even small reductions can materially improve profitability and cash flow at this scale.

3. Build Cash Reserves:
   Aim to accumulate a cash buffer to mitigate liquidity risks. This can be achieved by retaining more earnings or injecting additional capital if needed.

4. Formalise Employment or Partnerships:
   Consider hiring or formalising partnerships to scale operations and reduce dependence on the sole director. This may enhance operational capacity and service delivery.

5. Monitor Financial Ratios Regularly:
   Track key ratios such as current ratio, profit margin, and return on equity periodically to identify early symptoms of financial strain.

6. Plan for Growth Investment:
   Assess whether the company should invest in fixed or intangible assets to support expansion, but ensure this is matched with sustainable cash flow.

---