Company Number: 13107270

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: DECLINE
   VANATORUL LTD shows persistent negative net current assets (working capital) and net liabilities over the last three years, indicating a weak balance sheet and poor liquidity. Despite being a micro-entity with limited financial data, the company’s inability to maintain positive working capital suggests challenges in meeting short-term obligations. The absence of profit or equity growth and minimal shareholder funds (£293 in 2023) raise concerns about the company’s capacity to service debt or absorb financial shocks. Therefore, credit approval is not recommended without substantial improvement or additional security.

2. Financial Strength:
   The company’s financial position is fragile, with net current liabilities of £293 in 2023, worsening slightly from prior years (£308 net current liabilities in 2022 and 2021). Total net liabilities reflect minimal asset coverage over liabilities, and shareholder funds remain negligible. Fixed asset data is not provided, which likely indicates limited tangible asset backing. The small share capital (£100) and lack of retained earnings or reserves further weaken the equity base.

3. Cash Flow Assessment:
   Current assets are low (£6,505 in 2023), almost entirely offset by current liabilities (£6,798), implying tight liquidity and limited operational cash flow. The company appears to rely on minimal working capital, which could constrain its ability to cover short-term liabilities or finance growth. With only one employee and no indication of turnover or profitability, cash inflows may be insufficient to sustain ongoing obligations.

4. Monitoring Points:

• Monitor changes in net current assets to detect any improvement in liquidity.
• Review future filed accounts for evidence of profitability or positive cash flow generation.
• Track the director’s management actions and any capital injections that could strengthen equity.
• Watch for any overdue filings or legal actions indicating financial distress.