VN DERMATOLOGY LTD

Executive Summary

VN Dermatology Ltd is a recently incorporated micro-entity operating in specialist medical services with a strong liquidity and net asset position, and no overdue statutory filings. However, its very small scale, limited fixed assets, and short financial history warrant further investigation into profitability and operational sustainability before concluding on long-term risk. Overall, current evidence suggests low solvency and liquidity risk but limited operational depth.

VN DERMATOLOGY LTD - Analysis Report

Company Number: 14261992

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position relative to current liabilities, with increasing net current assets and shareholders’ funds over the last two years. There are no overdue filings, no indications of insolvency proceedings, and the business appears compliant with statutory requirements.

2. Key Concerns:

• Limited scale and operational capacity: The company remains a micro-entity with a single employee (the director), indicating possible dependence on a sole individual which can pose operational continuity risks.
• Minimal fixed assets and capital investment: Fixed assets are very low (£468 in 2024), suggesting limited physical infrastructure or equipment, which may affect scalability or resilience.
• Limited financial history and data: Incorporated in 2022 with only two full years of accounts, the short operating history provides limited insight into long-term sustainability or profitability trends.

3. Positive Indicators:

• Strong liquidity position: Current assets significantly exceed current liabilities (net current assets of £64,015 in 2024), indicating good short-term solvency and ability to meet obligations.
• Consistent growth in net assets: Shareholders’ funds increased from £35,468 in 2023 to £64,483 in 2024, suggesting retained earnings or capital injections.
• Compliance and governance: All filings (accounts and confirmation statement) are up to date with no overdue returns, and the same individual acts as director and secretary, simplifying governance with no reported compliance issues.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow information to assess operational profitability and cash generation, as these are not available here.
• Investigate the nature and terms of current liabilities to ensure no contingent liabilities or upcoming financial pressures.
• Understand the business model and client base given the small size and specialist medical practice SIC codes, to evaluate revenue stability and growth potential.
• Confirm whether any related party transactions or capital contributions have influenced net asset growth.
• Assess director’s background for operational capacity and any potential risks due to sole management.