Company Number: 14363855

Analysis Date: 2025-07-29 14:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Viya Spa Ltd is a very recently incorporated private limited company operating in the hairdressing and beauty treatment sector. The company shows modest net current assets and positive shareholders’ funds, indicating a basic level of financial stability. However, the working capital position has weakened from the prior year, and current liabilities have increased significantly. The company is still small and growing its asset base but carries increasing short-term liabilities, which may strain liquidity. Given the short trading history and limited scale, credit facilities should be extended cautiously with conditions such as monitoring liquidity closely and possibly requiring personal guarantees or collateral.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities of £19,170 as of 30 September 2024, down slightly from £21,343 the prior year. Fixed assets have increased, reflecting investment in plant and equipment (£9,281 net book value), supporting business growth and operational capacity. Shareholders’ funds stand at £19,170, reflecting retained earnings and a nominal share capital of £100. The company maintains positive net assets, but the modest equity base limits financial strength and resilience to shocks.

3. Cash Flow Assessment:
   Cash at bank and on hand is £69,783, increased from £63,371 the previous year, supporting operational liquidity. Debtors of £6,000 are low but present, showing some credit extended to customers. Current liabilities rose sharply to £65,894 from £44,943, driven mainly by trade creditors (£54,903) and a new £10,000 other creditor balance, which may indicate increased supplier credit or short-term borrowing. The net current assets have halved to £9,889, reducing the working capital cushion. Cash flow appears adequate now but may be tight if liabilities continue to grow. Close monitoring of creditor payment terms and debtor collections is advised.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to track working capital position regularly.
• Trends in trade creditors and other short-term liabilities for signs of payment stress.
• Cash flow forecasts and actual cash balances to ensure ongoing ability to meet obligations.
• Business growth vs. increase in liabilities to assess sustainability of expansion.
• Director’s management of expenses and capital investments for prudent financial stewardship.