Company Number: 14368770

Analysis Date: 2025-07-29 14:03 UTC

1. Credit Opinion: APPROVE with monitoring.
   V-COUNT (UK) LTD is a recently incorporated micro-entity that has shown a significant improvement in its financial position from a net liability position in 2023 to a strong net asset position in 2024. The company’s balance sheet displays healthy net current assets and positive shareholders’ funds, indicating an ability to meet short-term obligations. The business is backed by strong ownership and control from related entities and individuals with significant influence, suggesting stable governance. However, as a young company with a limited operating history and only one employee, ongoing monitoring of cash flows and business development milestones is advisable before extending larger credit facilities.

2. Financial Strength:
   The company’s net assets improved from a negative £10,675 at the end of 2023 to a positive £153,336 by the end of 2024. This turnaround is largely due to an increase in current assets—particularly cash or receivables—from £29,031 to £250,396, while current liabilities increased only modestly. The micro-entity category and modest staffing indicate a lean operation. No fixed assets are reported, consistent with a service-based IT company. The balance sheet is currently healthy with positive working capital and equity, indicating a low risk of insolvency in the near term.

3. Cash Flow Assessment:
   Liquidity appears strong with current assets at £250,396 comfortably covering current liabilities of £97,060, yielding net current assets of £153,336. This suggests sufficient short-term liquidity to service debts and operational expenses. The improvement from the previous year’s weaker liquidity position points to effective cash management or capital injections. However, with only one employee and no extensive operational history, further scrutiny of cash flow forecasts and receivables aging is recommended to ensure ongoing cash flow stability.

4. Monitoring Points:

• Continued improvement or stability in net current assets and net profitability.
• Cash flow sustainability as the company grows beyond micro-entity size.
• Impact of parent company ownership structure on governance and financial support.
• Timing and quality of receivables and any emerging overdue balances.
• Expansion of employee base and operating costs relative to revenues.
• Any changes in director appointments or control that could affect management continuity.