VICKY TRANSLOG LTD

Executive Summary

VICKY TRANSLOG LTD is a profitable and growing company with increasing equity, indicating good underlying financial health. However, liquidity pressures and unusual creditor accounting entries signal caution and the need for improved cash flow management and clearer financial reporting. Addressing these issues proactively will support sustainable growth and financial stability.

VICKY TRANSLOG LTD - Analysis Report

Company Number: 13515697

Analysis Date: 2025-07-20 17:38 UTC

Financial Health Assessment for VICKY TRANSLOG LTD (as at 31 July 2024)

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1. Financial Health Score: B- (Fairly Healthy with Caution)

Explanation:
VICKY TRANSLOG LTD shows a positive trajectory in profitability and equity growth, indicating a generally healthy business. However, signs of liquidity strain and some accounting irregularities around creditors (negative balances and dividends payable) suggest symptoms of financial distress that require close monitoring and corrective action.

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2. Key Vital Signs

Metric	Value (2024)	Trend (2023 to 2024)	Interpretation
Net Assets (Shareholders' Funds)	£12,869	+81%	Growing equity signals retained earnings accumulation and business value growth — a healthy sign.
Profit for the Year	£5,748	Slight increase	Consistent profitability supports business sustainability and ability to reinvest or pay debts.
Current Assets	£5,198	Sharp decline	Significant drop (from £19k) in liquid assets and receivables signals tightening liquidity.
Cash at Bank	£2,487	Decreased	Decrease in cash reserves could indicate cash flow pressures or increased spending.
Debtors (Receivables)	£2,711	Sharp decline	Lower receivables may reflect better collections or reduced sales; needs confirmation.
Current Liabilities	£6,362	Decreased	Reduction from £12k suggests repayment or reclassification, but includes dividends payable anomalies.
Net Current Assets (Working Capital)	£11,560	Increased	Positive and improving working capital suggests ability to meet short-term obligations comfortably.
Creditors (Within 1 Year)	-£6,362	Improved	Negative balance likely due to dividends payable entries; this is a symptom of potential accounting misclassification.
Creditors (After 1 Year)	-£1,309	New long-term liabilities	Indicates some long-term debt or dividend obligations; should be managed carefully.
Staff Costs	£28,475	Increased	Rising staff costs reflect business growth but pressure on operating cash flow if unchecked.

Note on Negative Creditors Balances:
The accounts show unusual negative creditor balances (e.g., dividends payable recorded as negative liabilities) which may distort liquidity analysis. These entries act like pending shareholder returns and not typical trade or financial liabilities, thus somewhat masking true creditor health.

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3. Diagnosis: Financial Condition and Underlying Health

• Profitability: VICKY TRANSLOG LTD is generating consistent profits, nearly £5.7k in the latest year, contributing to a healthy increase in retained earnings and net assets. This is a 'healthy heartbeat' indicating the company is able to create value.

• Liquidity and Working Capital: The company maintains positive net current assets (£11.56k), which is a good 'pulse' for short-term solvency. However, the sharp decline in current assets (especially cash and receivables) from last year signals possible 'symptoms of distress' in cash flow management or reduced sales volume.

• Balance Sheet Composition: The presence of dividends payable as negative creditors and some long-term liabilities (secured bank overdrafts and equity dividends) suggests 'financial strain symptoms' that need addressing. While dividends reflect confidence, unpaid dividends accumulate as liabilities and can stress cash resources if not planned properly.

• Accounting and Reporting: The accounts are unaudited but prepared under UK GAAP with the small company exemption. The director's report confirms compliance and going concern assumption. However, the unusual creditor balances may indicate a need for better clarity in financial recording.

• Governance and Control: Recent director changes and shareholding shifts (from Vitaliy Dimov to Victor Chistol as main director and PSC) could reflect internal restructuring or change in control, which may influence strategic direction and financial policies.

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4. Recommendations: Actions for Improved Financial Wellness

1. Improve Cash Flow Management:

   • Conduct a detailed cash flow forecast to identify timing mismatches.
   • Accelerate debtor collections or consider invoice financing if receivables are slow.

2. Clarify and Regularize Dividend Policy:

   • Formalize dividend declarations and payment schedules to avoid accumulating unpaid dividends as liabilities.
   • Communicate dividend strategy clearly to shareholders and document properly in accounts.

3. Review Creditors and Accounting Practices:

   • Engage accountants to review the classification of liabilities, especially negative creditor balances, to ensure financial statements present a true and fair view.
   • Consider an audit or thorough internal review for accuracy and transparency.

4. Monitor Costs and Staffing:

   • Align staff costs with business revenue growth to avoid operational cash flow pressure.
   • Explore efficiency improvements or cost control measures.

5. Strengthen Financial Reporting and Governance:

   • Maintain timely and accurate filings with Companies House.
   • Ensure director and shareholder records are up to date, especially with recent control changes.

6. Plan for Medium-Term Financing Needs:

   • Given some long-term liabilities, assess financing arrangements to ensure sustainable debt levels and avoid liquidity crunches.

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Medical Analogy Summary

VICKY TRANSLOG LTD shows a healthy heartbeat through consistent profits and equity growth, which is a strong sign of business vitality. However, the recent symptoms of distress—notably reduced cash reserves and confusing creditor entries—are warning signs that the company should diagnose and treat promptly to avoid liquidity-related complications. With proper financial care focusing on cash flow, accounting clarity, and dividend management, the company can restore and maintain robust financial health.

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