VANILLA SYSTEMS LTD

Executive Summary

Vanilla Systems Ltd has ceased trading since August 2022 but maintains a positive net asset position driven by cash reserves. Despite strong liquidity on paper, the lack of active business operations severely restricts its ability to generate income for debt servicing. Credit approval is not recommended until trading resumes and sustainable cash flows are demonstrated.

VANILLA SYSTEMS LTD - Analysis Report

Company Number: 13271882

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: DECLINE
   Vanilla Systems Ltd ceased trading on 31 August 2022 as disclosed in the latest accounts document, despite the company remaining active. This cessation of trading is a critical negative indicator for credit risk assessment, as the company currently has no trading activity to generate cash inflows to service debt or operations. The micro-entity status and minimal fixed assets also limit collateral value. Without active trading or revenue generation, the ability to repay loans or meet commercial commitments is highly questionable.

2. Financial Strength:
   The balance sheet shows a strong net asset position of approximately £70,854, primarily driven by current assets (cash or equivalents) of around £70,719 and negligible current liabilities (£26). No long-term liabilities are reported. The capital structure is minimal with only £1 share capital but sizeable retained earnings or reserves. However, the lack of trading activity since August 2022 means these assets likely represent cash reserves rather than ongoing business value or revenue-generating assets.

3. Cash Flow Assessment:
   Current assets substantially exceed current liabilities, indicating strong short-term liquidity. However, given the company ceased trading in August 2022, these liquid assets are unlikely to be replenished by operating cash flows. The absence of creditors and no reported financial commitments or guarantees suggest low cash outflows. Still, the sustainability of current liquidity depends on the use of reserves rather than operational cash generation, which is not sustainable long term.

4. Monitoring Points:

• Confirm any plans or timelines for resuming trading to assess future revenue and cash flow potential.
• Monitor cash burn rate from current reserves to estimate runway before funds are depleted.
• Watch for any new financial commitments or liabilities that could impact liquidity.
• Review updates to filed accounts and confirmation statements to detect changes in company status or financial position.