VALDEMARAS TRADER LTD

Executive Summary

VALDEMARAS TRADER LTD demonstrates strong financial health with growing assets, positive working capital, and a solid equity position. The company is expanding its operational capacity prudently, supported by healthy cash flow and manageable liabilities. Continued monitoring of long-term debt and asset utilisation will be key to sustaining this positive trajectory.

VALDEMARAS TRADER LTD - Analysis Report

Company Number: 12992728

Analysis Date: 2025-07-29 20:16 UTC

Financial Health Assessment for VALDEMARAS TRADER LTD

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1. Financial Health Score: B+

Explanation:
The company demonstrates strong growth in net assets and healthy working capital, reflecting good financial stability and operational performance. While the company shows positive signs of expansion, some caution is warranted due to increasing long-term liabilities and reliance on growing fixed assets. Overall, the financial "vital signs" indicate a generally healthy business with minor symptoms to monitor.

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2. Key Vital Signs:

Metric	2023 Value (£)	Interpretation
Fixed Assets	392,000	Significant increase (+79%) indicating investment in long-term resources, suggesting business expansion.
Current Assets	307,200	Healthy liquidity base, increased from previous year, providing ability to cover short-term obligations.
Cash at Bank	116,200	Strong cash balance supports day-to-day operations and buffers against short-term shocks.
Debtors	97,400	Moderate increase, mostly from regular customers with clear payment terms (within 90 days), indicating reliable receivables.
Current Liabilities	21,900	Low relative to current assets, resulting in robust net current assets (working capital).
Net Current Assets	285,300	A "healthy cash flow pulse," showing sufficient liquidity to meet current obligations comfortably.
Long-term Liabilities	123,500	Increased notably (+79%), warrants monitoring but manageable given asset growth.
Net Assets / Shareholders Funds	535,100	Strong equity growth (+33%), signifying retained profits and positive financial health.
Employee Count	7 (2023)	Growth in headcount reflects business scaling.

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3. Diagnosis:

VALDEMARAS TRADER LTD displays robust financial health marked by steady growth in both fixed and current assets, a strong cash position, and expanding equity base. The company’s working capital is positive and improving, indicating excellent short-term financial "vital signs" and liquidity — essential for operational sustainability.

The significant investment in tangible and intangible assets suggests strategic expansion, which is a positive "symptom" of growth and business confidence. The rise in long-term liabilities, while notable, aligns with asset acquisition and appears sustainable given the company's strengthened equity.

Receivables are well-managed with 98% from regular customers and payment cycles within 90 days, reducing credit risk. Employee growth signals scaling operations, which aligns with asset expansion.

No alarming "symptoms of distress" such as overdue filings, negative net assets, or liquidity crunches are apparent. The company is managing its financial structure prudently, balancing growth with maintaining a solid equity base.

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4. Recommendations:

• Monitor Long-term Liabilities: Continued growth in long-term debt should be reviewed carefully to ensure it does not outpace asset growth or strain cash flows. Consider refinancing options or debt restructuring if interest costs rise.

• Maintain Strong Cash Reserves: Preserve the current cash buffer to navigate market uncertainties and potential delays in debtor payments.

• Focus on Debtor Management: Although debtor quality is good, continue proactive credit control to prevent any ageing of receivables beyond 90 days.

• Asset Utilisation Review: Evaluate the productivity and return on new fixed and intangible assets to ensure investment translates into profitable operations.

• Scalability Planning: Align employee growth and operational costs carefully with revenue growth to maintain profitability margins.

• Regular Financial Reporting: Maintain timely filing and comprehensive financial reporting to support transparency and stakeholder confidence.

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