VENDA VAPE GROUP LIMITED

Executive Summary

Venda Vape Group Limited is an early-stage micro-entity with weak liquidity and minimal equity, exhibiting a negative working capital position and limited financial transparency. The company's infancy and insufficient tangible financial strength limit its capacity to service credit at this time. It is advisable to decline credit until more substantial trading history and improved financial metrics become evident.

VENDA VAPE GROUP LIMITED - Analysis Report

Company Number: 14718164

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: DECLINE
   Venda Vape Group Limited is a newly incorporated micro-entity (since March 2023) with limited financial history and very modest balance sheet figures. The latest accounts reveal a negative working capital position (£-21,375), indicating current liabilities significantly exceed current assets. This weak liquidity position raises concerns about the company’s ability to meet short-term obligations and service credit facilities. Additionally, net assets are minimal (£1,589), reflecting a very thin equity buffer. Absence of profit and loss data and cash flow information limits the confidence in assessing future profitability or cash generation. Given these factors combined with the company’s infancy and lack of demonstrated trading performance, credit approval is not recommended at this stage.

2. Financial Strength:
   The company holds fixed assets of £24,764 but current assets are only £8,587 against current liabilities of £29,962, resulting in a net current liability position. Total net assets stand at £1,589, which is very low. Shareholders’ funds mirror net assets, indicating no hidden reserves. The small capital base and negative working capital imply vulnerability to financial stress. The company is classified as micro and has only one employee (director), indicating a very small operation. No audit or extended financial disclosures are available, limiting transparency.

3. Cash Flow Assessment:
   Current assets are insufficient to cover short-term liabilities, suggesting potential liquidity issues. Negative net current assets indicate dependency on external financing or owner funding to meet immediate obligations. Absence of detailed cash flow statements or reported profits further restricts evaluation of cash generation capacity. The company’s ability to generate positive operating cash flow remains unproven, increasing credit risk.

4. Monitoring Points:

• Monitor future filings for improvements in working capital and liquidity ratios.
• Watch for positive profitability indicators in subsequent profit and loss accounts.
• Track any increases in current assets and reductions in current liabilities to improve short-term financial health.
• Observe director conduct and any changes in ownership or control that might impact governance and financial stewardship.
• Review any new credit facilities or financial support arrangements disclosed in future accounts.