VALENTINE TRANSPORT SOLUTIONS LTD

Executive Summary

VALENTINE TRANSPORT SOLUTIONS LTD exhibits a solid balance sheet with strong liquidity and increasing net assets, suggesting low solvency risk and good regulatory compliance. However, its very small scale and minimal equity capital warrant further investigation into cash flow and operational stability to fully assess ongoing sustainability. Overall, it currently presents as a low-risk investment from a financial stability perspective.

VALENTINE TRANSPORT SOLUTIONS LTD - Analysis Report

Company Number: 13248152

Analysis Date: 2025-07-29 14:47 UTC

1. Risk Rating: LOW
   The company shows a strong net asset position with positive working capital and no overdue filings. Its micro-entity status and consistent reporting indicate low immediate risk of insolvency or regulatory non-compliance.

2. Key Concerns:

• Limited Capital Base: Share capital is only £1.00, which may reflect minimal initial equity investment and potential reliance on retained earnings or external financing.
• Small Scale Operations: With only 2 employees and micro-entity classification, business sustainability depends heavily on market conditions and operational execution in a niche sector.
• Fixed Asset Decrease: Slight reduction in fixed assets from £10,451 (2023) to £9,780 (2024) could suggest aging equipment or underinvestment in capital assets which might impact operational capacity.

3. Positive Indicators:

• Strong Liquidity Position: Current assets (£47,933) significantly exceed current liabilities (£17,874), yielding net current assets of £30,059, indicating good short-term liquidity.
• Growing Net Assets: Net assets increased from £26,568 in 2023 to £39,839 in 2024, reflecting retained earnings or asset growth supporting solvency.
• Compliance and Timeliness: No overdue filings for accounts or confirmation statements, demonstrating good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Review the composition of current assets to confirm liquidity quality (e.g., cash vs. receivables).
• Investigate cash flow statements if available to verify operational cash generation and absence of liquidity stress.
• Examine revenue trends and profitability metrics (not provided) to assess business sustainability beyond balance sheet strength.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could impair solvency.
• Assess the director’s experience and related party transactions given the single director structure to understand governance risks.