Company Number: 12537561

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: LOW
   V S Financial Services Ltd demonstrates adequate solvency with positive net current assets and shareholders' funds across the last five years. The company is current with all filing deadlines and maintains a simple operational structure, which supports a low risk profile.

2. Key Concerns:

• Declining Asset Base and Net Assets: Net assets decreased from £25,263 in 2023 to £15,712 in 2024, indicating a contraction in financial strength that should be monitored.
• Minimal Share Capital: The nominal share capital of £1.00 suggests limited capital buffer for absorbing losses or supporting growth.
• Single Director and Employee: Operational reliance on one individual may pose continuity risk and limit business scalability.

3. Positive Indicators:

• Positive Working Capital: Net current assets remain positive (£14,121 in 2024), indicating the company can cover short-term liabilities.
• Timely Compliance: No overdue accounts or confirmation statements; compliance with Companies House filing requirements is up to date.
• Consistent Business Operation: Active status since 2020 with stable employee count and ongoing business activities as per SIC code 96090 (other service activities).

4. Due Diligence Notes:

• Investigate the reason for the significant drop in current assets and net assets between 2023 and 2024 to assess whether this reflects operational challenges or one-off events.
• Review cash flow statements or bank statements if available to confirm liquidity beyond balance sheet figures.
• Understand the business model and client base to assess sustainability given the very small scale and single director/employee setup.
• Confirm there are no undisclosed liabilities or contingent risks not captured in micro-entity accounts.
• Verify the director’s background and any potential related party transactions given the director is also the sole employee.