Company Number: 12938711

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. V7D Ltd is a small private limited company primarily engaged in quantity surveying activities. The company’s financials show positive net assets and working capital, indicating an ability to meet short-term obligations. However, there is a noticeable decline in net assets and net current assets in the latest year, coupled with an increase in current liabilities—particularly tax and social security creditors. The absence of an income statement limits visibility on profitability and cash generation trends. Credit approval is recommended with conditions: close monitoring of cash flow and liabilities, especially tax payments, and a request for management commentary or interim financials to understand revenue and profit trajectory.

2. Financial Strength: The balance sheet as of 31 October 2023 shows total net assets of £19,514, a decrease from £27,524 in 2022. Fixed assets stand modestly at £1,153, with current assets mainly comprised of cash (£38,769). Current liabilities increased significantly to £20,116 from £11,585, predominantly due to higher taxation and social security liabilities (£18,137). The company maintains positive net current assets (£18,653), but the reduction from prior years suggests some financial pressure. Shareholder funds are almost entirely retained earnings, indicating no recent equity injections beyond the nominal share capital (£1).

3. Cash Flow Assessment: Cash balances remain stable around £38,000, sufficient to cover the current liabilities by a ratio close to 2:1, which supports short-term liquidity. However, increased tax liabilities raise concerns about cash outflows and timing of payments. Given the limited employee base (one director) and small asset base, operational cash flow is likely tight. The lack of detailed profit and loss accounts hinders a full liquidity assessment, but available data suggests working capital management may need improvement to avoid liquidity strain.

4. Monitoring Points:

• Track quarterly cash flow and tax liability settlements closely.
• Review any changes in current liabilities, especially tax and social security creditor levels.
• Obtain interim management accounts or cash flow forecasts to assess ongoing profitability and liquidity.
• Monitor any changes in director appointments or company status that might affect creditworthiness.
• Watch for overdue filings or signs of deteriorating financial position in subsequent accounts.