VIP’S NAILS LTD

Executive Summary

VIP’S NAILS LTD presents a low risk profile with improving financial metrics, positive working capital, and compliance with statutory obligations. While the company is small and owner-managed, its financial health appears sound with no immediate solvency or liquidity concerns. Attention should be given to director loans and proposed dividends to ensure continued operational stability.

VIP’S NAILS LTD - Analysis Report

Company Number: 13701298

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: LOW
   VIP’S NAILS LTD demonstrates a stable financial position with positive net current assets and net assets increasing year-on-year. The company is current with all statutory filings and shows no signs of insolvency or liquidity distress.

2. Key Concerns:

• Proposed Dividends Liability: The accounts show a relatively large proposed dividends creditor (£9,570 in 2024) compared to cash on hand, which could pressure cash flow if dividends are paid before adequate reserves are maintained.
• Loans from Directors: There is a consistent director loan balance (£4,492 in 2024), which may indicate reliance on shareholder funding that should be monitored for repayment terms and potential personal risk to the director.
• Small Scale Operations: With only 5 employees and operating in a niche beauty treatment sector, the company’s growth prospects might be limited, making it potentially vulnerable to market or operational risks.

3. Positive Indicators:

• Improving Financial Position: Net current assets have increased significantly from £7,477 in 2023 to £18,858 in 2024, reflecting improved liquidity and working capital management.
• Strong Equity Base: Shareholders’ funds have risen from £7,477 in 2023 to £18,858 in 2024, indicating retained profitability and capital strengthening.
• Compliance and Governance: The company is up to date with accounts and confirmation statement filings, with no overdue documents or regulatory flags. The director is the sole owner with full control, which can lead to streamlined decision-making.

4. Due Diligence Notes:

• Review the terms and conditions of director loans to understand repayment schedules and any associated risks.
• Investigate the rationale and timing for proposed dividends to ensure they do not impair cash flow or operational liquidity.
• Assess the sustainability of the business model given the small size and market segment, including competitive positioning and customer base stability.
• Confirm no related-party transactions or contingent liabilities exist beyond those disclosed.
• Verify the accuracy and completeness of financial disclosures given the exemption from audit.