VIPS ELECTRICAL CONTRACTOR AND PROPERTY DEVELOPMENT LIMITED

Executive Summary

VIPS ELECTRICAL CONTRACTOR AND PROPERTY DEVELOPMENT LIMITED shows a sound financial foundation typical of a newly formed micro-entity, with positive net assets and working capital indicating liquidity and solvency. While current financial health is stable, the company should focus on building cash reserves, monitoring profitability, and planning for sustainable growth to ensure long-term financial wellness.

VIPS ELECTRICAL CONTRACTOR AND PROPERTY DEVELOPMENT LIMITED - Analysis Report

Company Number: 14705932

Analysis Date: 2025-07-29 17:41 UTC

Financial Health Assessment for VIPS ELECTRICAL CONTRACTOR AND PROPERTY DEVELOPMENT LIMITED

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1. Financial Health Score: B

Explanation:
As a newly incorporated micro-entity (less than 2 years old), the company demonstrates a stable start with positive net assets and sound working capital. Financial indicators suggest a healthy foundational position but limited scale and operational history constrain a top-tier grade. The score “B” reflects good initial financial condition with room to build resilience as the business grows.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	11,209	Represents investment in long-term assets (equipment, tools). Moderate for micro business.
Current Assets	2,044	Short-term assets including cash and receivables; relatively small but sufficient.
Current Liabilities	369	Short-term debts; low level indicates manageable immediate obligations.
Net Current Assets	1,675	Positive working capital; a sign of liquidity and ability to cover short-term debts.
Total Assets less Current Liabilities	12,884	Reflects the net investment in the business after covering short-term liabilities.
Net Assets (Shareholders’ Funds)	12,884	Positive equity indicating the business is solvent and “in the black.”
Number of Employees	2	Small workforce consistent with micro-entity status; manageable overhead.

Interpretation:

• Healthy cash flow symptoms: Positive net current assets indicate the company can comfortably meet its short-term financial obligations without distress.
• Strong equity position: Net assets equal shareholders' funds, showing no external debt burden at this stage.
• Limited operational history: Incorporated in March 2023, the company is in the early growth phase, so financial trends and profitability data are not yet established.

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3. Diagnosis

VIPS ELECTRICAL CONTRACTOR AND PROPERTY DEVELOPMENT LIMITED exhibits the characteristics of a young, micro-sized business with healthy foundational financial "vitals." The positive net current assets and net equity indicate no symptoms of financial distress or liquidity crunch. The director’s full ownership and control provide clear governance though also concentrate risk on a single individual. The company’s focus on electrical installation, construction of domestic buildings, and manufacture of carpentry products aligns with its asset base.

However, due to the limited operating history and small scale, the financial health is still in an early stage of development. The absence of detailed profit and loss data means we cannot fully assess profitability or cash flow sustainability yet. The company’s micro-entity filing status means it benefits from simplified reporting but also limits available financial disclosure.

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4. Recommendations

• Build Cash Reserves: Maintain and gradually increase liquid assets to safeguard against future working capital needs or unexpected expenses.
• Monitor Profitability: As trading history grows, track profit margins carefully to detect any operational inefficiencies or early signs of financial strain.
• Diversify Leadership Input: Consider appointing additional directors or advisors to spread governance responsibilities and enhance strategic oversight.
• Plan for Growth: Develop a business plan focusing on scaling operations sustainably while managing costs and investing in productive fixed assets.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Financial Reporting Enhancements: As the business grows beyond micro-entity thresholds, prepare for more detailed financial reporting and possible audit requirements.
• Risk Management: Assess industry-specific risks (construction sector volatility, supply chain issues) and establish mitigation strategies.

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