V BUILDGROUP LTD

Executive Summary

V BUILDGROUP LTD is a newly incorporated micro-entity exhibiting a stable but limited financial position with positive net assets and no compliance issues. The company currently operates with a narrow working capital margin, indicating it must carefully manage cash flow to avoid liquidity risks. Building cash reserves and diversifying revenue will be key to strengthening overall financial health and supporting sustainable growth.

V BUILDGROUP LTD - Analysis Report

Company Number: 14623626

Analysis Date: 2025-07-29 16:51 UTC

Financial Health Assessment for V BUILDGROUP LTD

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1. Financial Health Score: C

Explanation:
The company shows a positive but modest net asset position, indicating it is currently solvent but with limited financial buffer. As a micro-entity in its first financial year, the small scale and limited financial data means risks are higher, and financial resilience is not yet established.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,748	Represents cash, receivables, and other short-term assets available to meet immediate needs.
Current Liabilities	4,930	Debts and obligations due within one year.
Net Current Assets	818	Positive working capital, indicating the company can cover short-term liabilities, but narrowly.
Net Assets (Equity)	818	Total assets minus liabilities; positive but minimal equity base.
Number of Employees	2	Small workforce consistent with micro-entity status.
Account Category	Micro	Simplified reporting, consistent with small scale business operations.
Overdue Filings	No	Compliance with statutory filing deadlines is healthy.

Interpretation:
The company exhibits the "vital signs" of a young micro-business with just enough liquidity to cover immediate debts. The positive net current assets show no immediate liquidity distress ("healthy cash flow" for day-to-day operations), but the slim margin indicates vulnerability to unforeseen expenses or delayed income.

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3. Diagnosis

Underlying Financial Health:
V BUILDGROUP LTD is in the early stages of its business lifecycle, having incorporated only in January 2023 and filing its first accounts for the period ending January 2024. The financials reveal a business with limited scale but no immediate signs of financial distress.

• The positive net current assets and net assets indicate solvency and a balanced financial position, though with limited cushion.
• The absence of overdue filings and regulatory compliance points to sound governance practices.
• The small number of employees and micro-entity status reflect a lean operation, possibly with low overhead.
• Control is concentrated in a single director and shareholder, potentially allowing for quick decision-making but also potentially exposing the company to higher governance risk if that individual’s expertise or commitment wavers.

Symptoms Analysis:

• The low level of assets and equity suggests limited operational scale or initial investment, common for start-up or early-stage companies.
• The working capital is positive but minimal, suggesting the company should carefully monitor cash flow to avoid liquidity crunches.
• No audit requirement and simplified reporting reduce administrative burdens but also mean less external scrutiny of financial health.

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4. Recommendations

To improve financial wellness and build resilience, consider the following actions:

1. Build Cash Reserves:
   Aim to increase current assets, particularly cash or cash equivalents, to create a stronger buffer against unexpected expenses or delays in receivables. Healthy cash flow is the lifeblood of any business.

2. Enhance Revenue Streams:
   Diversify and grow income sources to increase turnover beyond micro-entity thresholds, enabling future investment and operational scaling.

3. Monitor Working Capital:
   Regularly review short-term assets and liabilities to maintain and improve net current assets, ensuring ongoing liquidity health.

4. Financial Planning and Forecasting:
   Implement basic budgeting and cash flow forecasting to anticipate financial needs and avoid symptoms of distress such as overdue payments or inability to meet liabilities.

5. Governance and Controls:
   Although currently controlled by a single director/shareholder, consider establishing additional oversight or advisory support to reduce concentration risk and strengthen strategic decision-making.

6. Prepare for Growth:
   As the company grows beyond micro-entity thresholds, prepare for increased financial reporting requirements and potential audit obligations.

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