VIRGO AUTOMOTIVES LTD

Executive Summary

Virgo Automotives Ltd maintains a stable net asset base with compliance in filings but exhibits liquidity constraints evidenced by current liabilities exceeding current assets and no reported employees. The company operates in a resilient sector, but operational sustainability may be limited by its small scale and asset contraction. Further cash flow scrutiny and operational clarity are recommended to fully assess financial stability.

VIRGO AUTOMOTIVES LTD - Analysis Report

Company Number: 12915540

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: MEDIUM
   The company shows a consistent positive net asset position but declining net current assets and fixed assets over recent years. The current liabilities slightly exceed current assets, indicating potential liquidity pressures, though the scale is modest. The micro-entity status and absence of employees may point to a minimal operational footprint, which can limit business resilience.

2. Key Concerns:

• Liquidity Pressure: Current liabilities exceed current assets by approximately £1,600 in 2024, reducing working capital and indicating tight short-term liquidity.
• Declining Fixed Assets: Fixed assets have fallen from £11,904 in 2020 to £7,301 in 2024, possibly signaling asset disposals or underinvestment in operational capacity.
• No Employees: The absence of employees reported in the latest accounts could raise questions about operational continuity or reliance on contractors, which may affect stability.

3. Positive Indicators:

• Consistent Net Assets: Despite fluctuations, net assets remain positive and stable around £5,600 to £6,400 over five years, indicating no erosion of shareholder funds.
• Timely Filings: Accounts and confirmation statements are up-to-date without overdue filings, showing compliance with regulatory requirements.
• Operating in Essential Sector: The company operates in vehicle maintenance and used car sales, sectors that often have steady demand.

4. Due Diligence Notes:

• Investigate cash flow statements or management accounts to assess actual liquidity and cash management given the working capital tightness.
• Clarify the nature of operations given zero employees—determine if activities rely on subcontractors or the director(s) only.
• Review any related party transactions or director loans that may impact financial stability.
• Understand reasons behind asset reduction and whether this reflects downsizing, asset sales, or impairment.