VICARI LIMITED

Executive Summary

VICARI LIMITED maintains a strong financial foundation with solid net assets and healthy working capital, ensuring operational stability. The recent operating loss signals a need for careful review and adjustment to sustain profitability. With focused management on cash flow and cost control, the company's financial health outlook remains positive.

VICARI LIMITED - Analysis Report

Company Number: 13661055

Analysis Date: 2025-07-20 14:47 UTC

Financial Health Assessment for VICARI LIMITED

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1. Financial Health Score: B

Explanation:
VICARI LIMITED demonstrates solid financial stability characterized by strong net asset backing and healthy working capital. However, the recent small operating loss signals early symptoms of financial strain that warrant close monitoring. Overall, the company is financially sound but shows mild signs of distress that should be addressed to maintain vitality.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Net Assets	593,684	602,631	Strong equity base with negligible decline; indicates solid financial "body strength."
Net Current Assets (Working Capital)	280,553	278,003	Healthy positive working capital, showing sufficient short-term liquidity ("healthy pulse").
Cash at Bank	288,924	417,075	Significant cash reserves, though decreased; still ample for operational needs ("cash flow health").
Current Liabilities	9,344	139,690	Sharp reduction in short-term debts, indicating improved short-term obligations management.
Operating Result (Loss)	-8,947	602,621*	Transitioned from strong profit to slight loss, a "symptom of metabolic slowdown" in operations.
Tangible Fixed Assets (Net)	29,702	41,199	Assets depreciated, reflecting usage but no impairment signs.
Share Capital	10	10	Nominal capital, typical for private limited companies.
Employees (Including Director)	1	1	Very lean operation ("single cell organism"), reliant on director's management and consultancy.

*Note: 2022 figure represents initial profit since incorporation.

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3. Diagnosis

Overall Financial Condition:
VICARI LIMITED is in a stable financial condition with a robust equity base and strong liquidity. The "heart" of the business—its cash reserves and working capital—beats steadily, providing confidence in its ability to meet short-term obligations without distress.

However, the company reported a small operating loss in 2023 after a profitable start in 2022. This "symptom" could indicate early operational challenges such as reduced revenue, increased costs, or investment in growth activities. The decline in cash reserves also reflects this change but remains within a safe margin.

The company operates as a micro entity with only one employee (the director), indicating a low overhead structure but also a potential risk if business volume fluctuates.

The fixed asset depreciation is normal and indicates aging assets without signs of impairment, which is a healthy sign.

No overdue filings or compliance issues were detected, suggesting administrative health.

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4. Recommendations

To maintain and improve financial wellness, VICARI LIMITED should consider the following:

1. Investigate Causes of Operating Loss:

   • Conduct a thorough review of revenue streams and expense drivers.
   • Identify if the loss is due to temporary investment in growth, one-off costs, or declining sales.
   • Implement corrective actions to restore profitability.

2. Cash Flow Management:

   • Monitor cash flow closely to ensure liquidity remains robust.
   • Avoid unnecessary expenditures and manage receivables efficiently.

3. Leverage Equity Strength:

   • Consider opportunities for strategic investments or partnerships using the strong net asset base.
   • Maintain conservative leverage to avoid financial strain.

4. Cost Control:

   • Review fixed and variable costs for potential savings without compromising service quality.
   • Depreciate assets appropriately and consider asset replacement timing.

5. Business Development:

   • As a management consultancy, explore expanding client base or diversifying services to offset potential revenue dips.

6. Ongoing Monitoring:

   • Regularly update financial forecasts and key performance indicators to detect early signs of distress.
   • Keep filings and compliance up to date to avoid penalties.

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Medical Analogy Summary:
VICARI LIMITED currently exhibits a "healthy pulse" with strong liquidity and equity but shows "symptoms of metabolic slowdown" due to the recent operating loss. With attentive care—monitoring cash flow, diagnosing causes of losses, and optimizing operations—the company can regain its financial vigor and continue to thrive.

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