V4 ENTERPRISE LTD

Executive Summary

V4 ENTERPRISE LTD exhibits a robust financial profile with strong liquidity, growing profitability, and solid equity accumulation. The company benefits from a healthy cash flow and effective management of liabilities, positioning it well for sustainable growth in the general medical practice sector. Continued prudent financial management and strategic reinvestment will support ongoing financial wellness.

V4 ENTERPRISE LTD - Analysis Report

Company Number: 13921070

Analysis Date: 2025-07-20 18:09 UTC

Financial Health Assessment for V4 ENTERPRISE LTD

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1. Financial Health Score: A-

Explanation:
V4 ENTERPRISE LTD demonstrates strong financial health for a young company, with solid growth in net assets and healthy working capital. The company maintains a robust cash position relative to current liabilities, indicating good liquidity and financial stability. The slight deduction from a perfect score reflects the early stage of the company’s lifecycle and relatively modest asset base, which is typical for a service provider in general medical practice.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets (Shareholders’ Funds)	£23,575	Positive and growing net assets signify accumulating retained profits and a solid equity base.
Current Assets	£27,518	High cash balance indicates strong liquidity—"healthy cash flow" to meet short-term obligations.
Current Liabilities	£9,213	Manageable short-term debts, less than half of current assets, indicating good working capital.
Net Current Assets (Working Capital)	£18,305	Strong working capital supports smooth ongoing operations without liquidity strain.
Fixed Assets	£5,270	Tangible assets are modest but increasing, showing investment in operational resources.
Profit for the Year	£21,224	Significant profit growth evidences business profitability and operational efficiency.
Dividend Payments	£2,000	Reasonable dividends reflect shareholder returns without compromising liquidity.
Number of Employees	2	Small team size consistent with a micro/small-scale medical practice.

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3. Diagnosis: What the Financial Data Reveals

V4 ENTERPRISE LTD appears to be in a healthy financial condition with no immediate symptoms of distress. The company has grown net assets from £4,351 in 2023 to £23,575 in 2024, driven by retained earnings from profitable operations. The increase in fixed assets suggests reinvestment in the business’s capacity.

The balance sheet shows a strong liquidity position, with cash and current assets comfortably covering current liabilities. This “healthy cash flow” scenario reduces the risk of insolvency and underscores operational resilience. The modest level of current liabilities, including corporation tax and other creditors, is well managed.

The company operates in a stable and essential sector (general medical practice), which typically ensures steady revenue streams. Directors’ advances to the company are minor and decreasing, indicating limited reliance on director loans, which is a positive sign.

Given the company’s recent incorporation in 2022, the rapid growth in equity and profitability reflects sound management and market positioning.

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4. Recommendations: Actions to Improve Financial Wellness

• Maintain Strong Liquidity: Continue to monitor cash flow closely to preserve the company's ability to meet short-term obligations and unforeseen expenses.
• Asset Utilisation: Review fixed asset investments regularly to ensure they are optimally supporting productivity and revenue growth.
• Profit Retention vs. Dividend Policy: Balance dividend payments with reinvestment needs to support future expansion and buffer against potential market fluctuations.
• Monitor Tax Liabilities: Corporation tax has increased; ensure timely planning to avoid surprises and optimize tax efficiency.
• Risk Management: As a medical practice, consider investing in professional indemnity insurance and compliance to mitigate operational risks.
• Growth Strategy: Explore controlled staff expansion or service diversification to leverage profitability while maintaining cost discipline.

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