Company Number: 13516429

Analysis Date: 2025-07-20 13:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   VA Orthopaedics Limited demonstrates a reasonable financial position for a micro-entity in the specialist medical practice sector, with positive net assets and working capital. However, the company shows a slight decline in net assets from £24,866 in 2023 to £20,044 in 2024, which warrants monitoring. The limited scale (2 employees) and absence of audited accounts increase the risk profile. Credit approval should be conditional on ongoing financial performance review and confirmation of stable cash flows.

2. Financial Strength:

• Net Assets decreased by approximately 19% from £24,866 to £20,044 in the latest year, indicating some erosion of equity.
• Fixed assets are modest and stable (£15,665 in 2024 vs £15,799 in 2023), with no significant capital expenditure or disposals noted.
• Positive net current assets of £11,692 suggest reasonable short-term financial health.
• Accruals and deferred income have increased (from £5,092 to £7,313), which may reflect timing of income recognition or liabilities.
• Overall, the balance sheet remains solvent but shows signs of tightening liquidity and capital preservation challenges.

3. Cash Flow Assessment:

• Current assets (£23,293) exceed current liabilities (£21,419), indicating positive working capital and liquidity buffer.
• The company’s net current assets reduced from £14,159 in 2023 to £11,692 in 2024, signaling some tightening in liquidity.
• No detailed cash flow statement is provided, but the stable employee count and modest asset base suggest limited cash burn.
• The presence of prepayments and accrued income (£9,818) points to some receivable timing risk.
• A thorough review of receivables collection and payables management is recommended to ensure sustained cash flow adequacy.

4. Monitoring Points:

• Track net asset trends and working capital fluctuations to detect any further erosion.
• Monitor accruals and deferred income balances for timing and recognition issues.
• Review cash flow statements when available to confirm liquidity sufficiency.
• Assess the impact of any business growth or contraction on capital needs and debt servicing ability.
• Evaluate director management, particularly given the small team and the significant shareholding concentration.