VEGITEL LTD

Executive Summary

VEGITEL LTD is currently in a weak financial position with escalating net liabilities and persistent working capital deficits. The company’s ability to meet debt obligations or sustain credit facilities is questionable given its negative net assets and poor liquidity. Without significant financial restructuring or operational improvement, credit approval is not advisable at this stage.

VEGITEL LTD - Analysis Report

Company Number: 13340101

Analysis Date: 2025-07-29 20:07 UTC

1. Credit Opinion: DECLINE
   VEGITEL LTD demonstrates persistent and increasing net liabilities over the last three financial years, with net assets deteriorating from -£2,058 in 2021 to -£10,202 in 2024. The company’s micro-entity status and minimal share capital (£1) further limit its financial buffer. Current liabilities consistently exceed current assets by a significant margin, indicating poor short-term liquidity. The lack of positive working capital and ongoing losses raise concerns about the company’s ability to service any additional credit facilities or meet its debt obligations without external support. The business appears to be struggling financially with no indication of turnaround or profitability.

2. Financial Strength:
   The balance sheet reveals a weak financial position with net liabilities increasing year on year. Negative shareholders’ funds and net current liabilities reflect a strained capital structure. The company’s fixed asset base is negligible or unreported, and it relies solely on current assets that are insufficient to cover short-term liabilities. The absence of equity injection or retained earnings suggests limited financial resilience. Overall, the financial strength is poor and does not support extending credit without significant improvement or guarantees.

3. Cash Flow Assessment:
   Current assets are very low (£3,919 at 2024 year-end), while current liabilities remain high (£13,401), resulting in a net current liability position of -£9,482. This indicates weak liquidity and potential cash flow difficulties in meeting short-term obligations. The static or declining current assets over recent years and stable but high creditor balances suggest that working capital management is ineffective. The company may be reliant on director loans or external funding to cover operating expenses.

4. Monitoring Points:

• Track improvement in net current assets and overall net asset position in subsequent filings.
• Monitor cash flow statements (if available) for operational cash generation or reliance on financing.
• Review director conduct and involvement given sole ownership and control by Mr. Malik.
• Watch for any capital injections or restructuring efforts that improve solvency.
• Evaluate any changes in trading conditions or market environment affecting wholesale fruit and vegetable sector.