VAPEUNI LIMITED

Executive Summary

VAPEUNI LIMITED is in a fragile financial condition with negative working capital and net assets, relying heavily on parent company support. Immediate liquidity improvement and strategic operational focus are essential to ensure ongoing viability and future growth prospects.

VAPEUNI LIMITED - Analysis Report

Company Number: 14501271

Analysis Date: 2025-07-29 12:49 UTC

Financial Health Assessment of VAPEUNI LIMITED

---

1. Financial Health Score: D

Explanation:
VAPEUNI LIMITED shows serious signs of financial distress, with a negative net asset position and working capital deficit. The company is in its early stage of development, but current financial indicators reveal structural weaknesses that require urgent attention to avoid worsening liquidity and solvency issues.

---

2. Key Vital Signs

Metric	Value	Interpretation
Cash at Bank	£1	Critically low cash reserves — "barely a heartbeat" of liquidity
Current Liabilities	£2,500	Short-term debts exceed cash by a large margin — "symptom of acute liquidity stress"
Net Current Assets	-£2,499	Negative working capital — indicates inability to cover short-term liabilities with current assets
Net Assets (Equity)	-£2,499	Insolvency risk — shareholder funds are negative, indicating liabilities exceed assets
Share Capital	£1	Minimal paid-up capital — very limited equity cushion
Profit & Loss Account	-£2,500	Accumulated losses or initial funding shortfall reflected here

---

3. Diagnosis

The financial "vital signs" indicate that VAPEUNI LIMITED is currently in a fragile state — akin to a patient with dangerously low blood pressure and insufficient oxygen supply. The company has only £1 in cash but owes creditors £2,500, creating a significant shortfall in working capital. This implies an inability to meet immediate financial obligations without external support.

The negative net asset position (-£2,499) signals the business is technically insolvent on a balance sheet basis. The company operates with no employees and appears to be dependent on its parent company or external parties for financial support to continue as a going concern.

The accounts note that the parent company (Supersmooth Beta HK Limited) intends to support VAPEUNI LIMITED financially. This external lifeline is critical for survival but also highlights that the company’s core operations have yet to generate positive cash flow or profitability.

The industry classification covering tobacco product retail and wholesale, plus other professional services, suggests the business operates in a competitive and regulated sector. Early stage companies in such sectors often face steep initial costs and regulatory hurdles, which may explain the current financial strain.

---

4. Recommendations

To move from this precarious financial "patient" towards health, the company should consider the following:

• Improve Liquidity Immediately:
  Seek additional capital injections or working capital facilities to address the critical cash shortage and avoid creditor pressure or insolvency risk.

• Cost Control & Operational Planning:
  Develop a detailed budget and cash flow forecast to monitor and manage expenses tightly. Avoid unnecessary costs until positive cash flows are established.

• Revenue Generation Strategies:
  Accelerate marketing and sales initiatives in the tobacco retail and wholesale segments to build a stable revenue base, ensuring compliance with UK regulations.

• Financial Reporting & Monitoring:
  Establish regular financial reviews with key stakeholders or advisors to detect "symptoms" of distress early and adjust strategy promptly.

• Explore Funding Options:
  Consider whether equity funding, loans from the parent or third parties, or government support schemes can provide a sustainable financial buffer.

• Governance & Compliance:
  Maintain transparency with stakeholders and ensure all statutory filings and compliance obligations are met timely to avoid penalties or reputational risk.

---

Executive Summary

VAPEUNI LIMITED is currently experiencing significant financial distress, characterized by critically low cash reserves and negative net assets. Although supported by a parent company, the business must urgently improve liquidity and establish a sustainable revenue model to stabilize its financial health. Without prompt corrective action, the risk of insolvency remains high.