Company Number: 14123662

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Versus-UK Ltd is an active private limited company in the retail trade of motor vehicle parts and accessories, incorporated recently in 2022. The company has demonstrated modest growth in net assets and shareholders’ funds from £122k in 2023 to £151k in 2024. Liquidity is adequate with positive net current assets of £129k in 2024, improving from £115k the prior year. However, the company’s trade debtors have decreased significantly, and overall current assets declined, indicating some potential volatility in working capital. Directors have not opted for an audit, and accounts are unaudited, which limits external assurance. Given the small size and early stage of the company, credit approval is recommended with conditions such as ongoing monitoring of debtor collections and liquidity, plus periodic review of updated financials.

2. Financial Strength:
   The balance sheet shows a solid equity base relative to total assets, with shareholders’ funds increasing from £122k to £151k over the last two years, indicating retained earnings growth. Fixed assets are modest (£22k) and mainly tangible, with depreciation properly accounted for. The company maintains positive net current assets (£129k) reflecting a good working capital position, though current liabilities remain significant (£177k). The reduction in trade debtors (£110k in 2024 vs £158k in 2023) and other debtors suggests tighter credit control or reduced sales on credit terms. Stock levels have also decreased. Overall, the company’s financial strength is moderate but improving, typical for a small, young enterprise.

3. Cash Flow Assessment:
   Cash at bank improved notably to £38k in 2024 from £14k in 2023, supporting liquidity. The company’s net current assets of £129k provide a buffer against short-term liabilities of £177k, indicating sufficient working capital. However, the decrease in debtors and stock may reflect tighter cash flow management or slower sales, which could impact future liquidity if not managed carefully. The company operates with only 2 employees, suggesting low fixed overheads. The cash flow appears stable for current scale, but ongoing monitoring of debtor turnover and creditor payment terms is advised to ensure the company can meet short-term obligations.

4. Monitoring Points:

• Debtor days and collections efficiency: A significant drop in debtors should be assessed for impact on revenue and cash flow.
• Stock turnover and valuation: Reduced inventory should be monitored to avoid stockouts or overstocking issues.
• Creditor payment terms: Current liabilities remain high; watch for any delays or disputes with suppliers.
• Profitability trends: Lack of filed income statement means profitability should be reviewed when available.
• Director and shareholder changes: Control is concentrated with Belgian PSCs and a UK director; governance and decision-making transparency should be ensured.
• Compliance with filing deadlines and potential audit considerations as company grows.