Company Number: 13833730

Analysis Date: 2025-07-20 14:01 UTC

1. Credit Opinion: APPROVE with conditions. Vinyl Grafx Limited shows a stable balance sheet with positive net assets and working capital, indicating an ability to meet short-term obligations. The company is relatively new (incorporated in 2022) but has filed timely accounts and returns, which supports compliance and governance standards. However, cash reserves have declined significantly from £54,359 to £30,876 in the latest year, which requires monitoring to ensure liquidity is maintained. The directors are experienced, and control is concentrated within the Willoughby family, which may provide consistent management but also warrants observing governance and decision-making transparency.

2. Financial Strength: The company’s net assets increased modestly from £44,968 in 2023 to £46,867 in 2024, reflecting retained earnings and modest growth. Tangible fixed assets increased with new additions, supporting operational capacity. Working capital remains positive at £33,119, indicating sufficient short-term financial strength. Provisions for liabilities increased slightly but remain manageable. Overall, the balance sheet is healthy for a small private limited company with no audit requirement, and shareholders’ funds cover all liabilities.

3. Cash Flow Assessment: Cash on hand decreased materially by approximately £23,500 year-on-year while debtors increased from £5,752 to £24,023, indicating a potential lengthening of receivables collection or increased credit sales. Current liabilities slightly decreased, maintaining manageable creditor levels. The company holds sufficient net current assets to cover short-term liabilities, but the drop in cash suggests careful cash flow management is needed to avoid liquidity stress, particularly given the company’s young age and growth phase.

4. Monitoring Points:

• Monitor cash balances and debtor days closely to ensure timely collections and maintain liquidity.
• Watch any changes in provisions or creditor balances that may indicate emerging liabilities.
• Track turnover and profitability trends in future filings to confirm sustainable growth.
• Ensure directors maintain good governance practices given family control concentration.
• Review any changes in working capital structure or fixed asset investments that could impact cash flow.