VECTIS EXPEDITIONS LTD

Executive Summary

Vectis Expeditions Ltd demonstrates a fair financial health status with improved liquidity and a return to positive equity after previous losses. However, the small equity base and reliance on accruals highlight the need for cautious cash flow management and equity strengthening. With careful oversight and strategic growth planning, the company can enhance its financial stability and resilience.

VECTIS EXPEDITIONS LTD - Analysis Report

Company Number: 12538055

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment: VECTIS EXPEDITIONS LTD (as of 31 March 2024)

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1. Financial Health Score: C

Explanation:
The company's financial health is currently fair but shows signs of instability and volatility in net assets over the past years. While recent improvements in net current assets and positive net assets indicate some recovery and operational continuity, the small scale of the business and fluctuating equity levels prevent a higher grade. The company is not in immediate distress, but careful management is needed to sustain and improve financial wellness.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£18,646	Sufficient liquid resources increased significantly from previous year, indicating better liquidity ("healthy cash flow").
Current Liabilities	£1,918	Low short-term obligations relative to assets, which is positive.
Net Current Assets	£30,265	Strong working capital position, indicating the company can comfortably cover short-term debts ("stable financial pulse").
Accruals and Deferred Income	£27,256	Represents future income or expenses recognized; careful monitoring needed to ensure accruals do not mask cash flow issues.
Net Assets (Equity)	£3,009	Positive but modest shareholder funds after several years of fluctuation, reflecting recovery from prior losses.
Share Capital	£1.00	Minimal share capital typical for micro-entities; control concentrated with single owner.
Employees	0	No employees, indicating a very small or possibly owner-operated business model.

Additional Notes:

• The company qualifies as a micro-entity, with minimal reporting and operational scale.
• No audit required, accounts unaudited, which limits external assurance on accuracy but is common at this level.
• Sole director and 100% ownership by Mr. Andrew James Hunt, indicating centralized control.

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3. Diagnosis

• Liquidity and Working Capital: The company shows a healthy liquidity position with net current assets significantly exceeding current liabilities. This indicates good short-term financial stability and the ability to meet immediate obligations without stress.
• Equity Stability: After prior negative net asset values (notably in 2022), the company has returned to positive equity by 2023 and maintained it in 2024, suggesting corrective actions or improved profitability. However, the low absolute level of equity (£3,009) signals limited financial buffer against unexpected losses or economic downturns.
• Revenue Recognition / Accruals: The large accruals and deferred income figure (£27,256) relative to net assets and current assets could suggest income timing issues or revenue received in advance. This is not necessarily a problem but requires good management to ensure cash flow aligns with reported income.
• Scale and Risk: Operating with no employees and minimal capital means the company is highly dependent on the owner/director's management and business pipeline. This "fragile but functional" status is common for start-up or niche micro-businesses but carries risks if key person dependency or market disruption occur.
• Sector Context: The company's activity in expeditionary diver training and scientific diving is specialized, potentially with variable demand and seasonality, which could explain fluctuations in financial metrics.

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4. Recommendations

• Strengthen Equity Base: Consider injecting additional capital or retaining earnings to build a stronger equity buffer. This will increase resilience against future losses or investment needs.
• Cash Flow Monitoring: Keep close watch on cash flow, especially regarding accruals and deferred income, to avoid liquidity surprises. Implement regular cash flow forecasting and scenario planning.
• Diversify Income Streams: Explore opportunities to broaden service offerings or client base to reduce dependency on fluctuating expedition schedules or single revenue sources.
• Formalize Financial Controls: Even as a micro-entity, establish basic financial controls and reporting routines to detect early signs of distress and enable proactive management.
• Plan for Growth: If growth is targeted, prepare for potential employee hires and increased operational complexity, including compliance with enhanced accounting and reporting standards.
• Maintain Compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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