VINGUARD LTD

Executive Summary

Vinguard Ltd is a very small private company with limited financial resources and a significant decline in cash reserves over the last year, raising liquidity concerns. While it maintains positive net assets and no overdue filings, its minimal working capital and reliance on director loans suggest vulnerability to cash flow pressures. Credit approval is possible but should be conditional on enhanced monitoring of liquidity and business activity.

VINGUARD LTD - Analysis Report

Company Number: 12706850

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Vinguard Ltd demonstrates positive net assets and modest working capital, indicating a minimal but positive buffer to cover short-term liabilities. However, a significant decline in cash reserves—from £16,022 in 2023 to £513 in 2024—and a reduction in net current assets from £8,276 to £492 raises concerns about liquidity and operational cash flow. The company has no employees, suggesting limited operational scale or possibly outsourced activities. The presence of director loans partially offsets liabilities but also reflects reliance on internal funding. Given these factors, credit approval is feasible but should be conditional upon monitoring liquidity closely and obtaining further details on cash flow management and business activity.

2. Financial Strength:
   The balance sheet as of June 2024 shows net assets of £492, down sharply from £8,276 the prior year. This drop is largely due to a decrease in cash and settling of liabilities. Shareholders’ funds remain positive but minimal (£492), comprised mostly of accumulated losses and a nominal share capital of £100. The company carries no fixed assets disclosed, and working capital is positive but very tight. The small size and limited asset base constrain financial resilience, making the company vulnerable to adverse financial shocks or unexpected expenses.

3. Cash Flow Assessment:
   The drastic reduction in cash from £16,022 to £513 indicates cash consumption or limited inflows. Current liabilities have also fallen significantly to £21, which may indicate debt repayments or creditor settlements. However, the nearly depleted cash position signals potential liquidity risk in meeting immediate obligations. The net current assets of £492 provide minimal working capital cover. The notes show loans from directors fluctuating from positive £183 to negative £6,611, suggesting changes in internal funding arrangements. Overall, cash flow appears strained and requires active management.

4. Monitoring Points:

• Cash balances and liquidity trends in subsequent reporting periods.
• Changes in current liabilities and any new debt or credit facilities.
• Director loan balances and terms, to assess dependency and repayment risk.
• Business activity indicators given zero employees and minimal assets.
• Any external funding or capital injections to strengthen equity base.