VITA RETAIL LTD

Executive Summary

VITA RETAIL LTD shows improving financial strength with positive net assets and working capital growth typical of a micro retail business. The company can service its current debt levels but carries significant long-term liabilities requiring close cash flow monitoring. Credit approval is recommended on a conditional basis with regular financial reviews to mitigate risk.

VITA RETAIL LTD - Analysis Report

Company Number: 13088318

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   VITA RETAIL LTD demonstrates modest but improving financial strength typical of a micro-entity retail business. The company has a positive net asset position and growing shareholders’ funds, indicating retained earnings and capital growth. However, the current liabilities due after one year are significant relative to total assets, which warrants close monitoring. The company’s ability to service its debts appears adequate but somewhat reliant on continued operational cash flow and prudent management. The director’s control and active management is clear, which supports governance stability. Credit approval should be conditional on updated periodic financial reviews and confirmation of cash flow sufficiency.

2. Financial Strength:
   The balance sheet shows total net assets of £23,936 as of 31 March 2024, nearly doubling from £12,395 in the prior year, reflecting retained earnings and possibly additional capital injection. Fixed assets decreased slightly but remain substantial at £86,628. Net current assets improved significantly to £44,176, indicating better short-term liquidity. However, long-term creditors amount to £105,526, which is a considerable liability against total assets of approximately £132,804. The company’s equity base remains very small but positive, typical for micro-entities.

3. Cash Flow Assessment:
   Current assets increased to £60,457 with inclusion of prepayments and accrued income of £9,851, supporting working capital. The rise in net current assets from £18,601 to £44,176 is a positive signal for liquidity. Average employees increased from 4 to 5, suggesting some operational growth. However, the sizeable long-term liabilities imply that the company must maintain steady cash generation to meet debt obligations without refinancing risk. The absence of detailed cash flow statements limits deeper liquidity analysis, so ongoing monitoring of operating cash flow is essential.

4. Monitoring Points:

• Monitor long-term creditor balances relative to asset base, ensuring no liquidity strain.
• Review operating cash flows and profitability trends to confirm debt servicing capacity.
• Watch for any changes in payment terms or overdue liabilities.
• Confirm continued compliance with filing deadlines and absence of adverse director conduct.
• Assess impact of any business expansion or staff increase on working capital needs.