VECTOR-FOILTEC SERVICE LTD

Executive Summary

VECTOR-FOILTEC SERVICE LTD is a small, recently established construction-related company with limited financial history and modest net assets. While currently solvent with positive working capital, the company’s low cash reserves and scale warrant cautious credit exposure. Conditional approval is advised, with ongoing monitoring of cash flow and operational performance critical to mitigate credit risk.

VECTOR-FOILTEC SERVICE LTD - Analysis Report

Company Number: 14501723

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   VECTOR-FOILTEC SERVICE LTD is a newly incorporated small private limited company with a single director/shareholder. The company shows modest net current assets (£1,918) and positive shareholders’ funds (£1,918) after its first financial year. However, total assets and cash balances are low, and the company’s scale and operating history are limited. The ability to service debt depends heavily on future cash flow generation and business development. Approval is recommended on a conditional basis, requiring periodic monitoring of trading performance and cash flow improvements before any material credit exposure is extended.

2. Financial Strength:
   The company’s balance sheet indicates a very small but positive net asset base. There are no fixed assets, and current liabilities of £6,414 are slightly offset by current assets of £8,332, mainly debtors. The company has minimal cash on hand (£141), which limits immediate liquidity. The small profit and loss reserve (£1,818) reflects retained earnings from the inaugural year, suggesting initial profitability or capital injection. The overall financial strength is weak due to low asset base and limited operational scale but not currently negative.

3. Cash Flow Assessment:
   The low cash balance and reliance on debtors for current assets highlight potential liquidity constraints. The net current assets position is positive but marginal, indicating working capital is tight. The company’s ability to convert debtors into cash promptly will be critical to meet short-term obligations. No off-balance sheet liabilities were reported, and creditors mainly comprise other creditors and small tax liabilities. Cash flow monitoring is essential to ensure ongoing solvency and operational continuity.

4. Monitoring Points:

• Quarterly cash flow and debtor collection performance to assess liquidity improvements.
• Profit and loss trends in subsequent accounting periods to confirm business viability and growth trajectory.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Any material changes in the directorate or ownership structure that may affect governance or credit risk.
• Potential build-up of liabilities or deterioration in working capital ratios.