VGI DELIVERY SERVICES LIMITED

Executive Summary

VGI DELIVERY SERVICES LIMITED exhibits poor financial health with worsening net liabilities and significant working capital deficits, undermining its capacity to service debts. The lack of operational scale and minimal assets suggest a high credit risk. Credit extension is not recommended until material financial improvements are demonstrated.

VGI DELIVERY SERVICES LIMITED - Analysis Report

Company Number: 13139616

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: DECLINE
   VGI DELIVERY SERVICES LIMITED shows significant and increasing net liabilities with net assets deteriorating from -£822 in 2023 to -£9,243 in 2024. The company operates at a net current liability position, indicating working capital insufficiency and potential liquidity stress. The absence of employees and minimal current assets (£1,110) against current liabilities (£17,865) raises concerns about its ability to meet short-term obligations. Given these financial weaknesses and that the company is relatively new (incorporated 2021) without signs of financial improvement or operational scale, extending credit would expose the bank to high risk of default.

2. Financial Strength:
   The balance sheet is weak with negative net assets, reflecting accumulated losses or undercapitalization. Fixed assets are minimal (£7,511) and largely illiquid. The company’s working capital is deeply negative (£-16,755), indicating that current liabilities significantly exceed current assets. The shareholder’s funds are negative, confirming erosion of equity. The company’s micro-entity status limits the depth of financial reporting but the available data clearly shows poor financial health.

3. Cash Flow Assessment:
   Current assets of only £1,110 are insufficient to cover current liabilities of £17,865, implying a liquidity shortfall. There is no indication of cash reserves or receivables sizeable enough to support operational cash flow needs. The company reports zero employees, suggesting minimal operational activity, which may limit cash inflows. Without sufficient working capital or cash buffers, the company is likely unable to service debts or operational costs reliably.

4. Monitoring Points:

• Track net current liabilities and liquidity ratios in future filings to detect any improvement.
• Monitor cash flow statements when available to assess ability to generate or access cash.
• Watch for changes in director or ownership that might signal restructuring or capital injection.
• Review any potential increase in trading activity or employee numbers indicating business scale-up.