Company Number: 13998954

Analysis Date: 2025-07-20 13:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   VAMA SPA LIMITED is a very young private limited company operating in the hairdressing and beauty treatment sector. The company shows modest net assets (£5.5k) but currently has negative net working capital (£-1.77k), indicating liquidity pressure. The director has invested minimal share capital (£1) and the business is in early growth stages with limited financial history. While no overdue filings or insolvency flags exist, the company’s ability to service additional debt depends on improving cash flow and managing short-term liabilities carefully. Credit approval is conditional on close monitoring of liquidity and timely repayment ability.

2. Financial Strength:
   The balance sheet shows fixed assets of £7,248 (net of depreciation) primarily in plant and machinery and fixtures, appropriate for their service industry. Current assets total £23,471, mostly cash (£17.5k) and debtors (£6k), but current liabilities are high at £25,241, resulting in a negative working capital position (-£1,770). Net assets of £5,478 are modest but positive, reflecting some retained earnings. The company is classified as a small entity but with limited operating history, so financial strength is weak to moderate at this stage.

3. Cash Flow Assessment:
   Cash holdings have increased significantly from £1 in the prior year to £17,471, which supports short-term liquidity. However, the high current liabilities relative to current assets indicate the company may face challenges in meeting immediate obligations without additional cash inflows or credit. Debtors of £6,000 need to be collected efficiently to maintain liquidity. The absence of detailed profit and loss data limits assessment, but the negative working capital suggests reliance on cash management and possibly short-term borrowing.

4. Monitoring Points:

• Track working capital trends each reporting period to ensure improvement in liquidity metrics.
• Monitor cash flow from operations to confirm consistent cash generation and debt servicing capacity.
• Keep watch on current liabilities growth and creditor payment days to avoid liquidity strain.
• Observe director’s ongoing capital support or external funding to strengthen the balance sheet.
• Review turnover and profitability development as company matures for sustainable creditworthiness.