Company Number: 13593503

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: MEDIUM
   Vorttis Ltd demonstrates some improvement in net assets and liquidity from 2023 to 2024, moving from a significant net liability position to a marginal net asset position. However, the company continues to carry sizeable long-term debt relative to its equity base and current assets, indicating moderate solvency and liquidity risks.

2. Key Concerns:

• High Long-Term Debt: £15,872 of bank loans due after one year significantly outweighs shareholders’ funds (£742), which may strain the company’s ability to meet obligations if earnings do not improve.
• Low Cash Reserves: Although cash increased markedly from £22 to £12,496 in 2024, this remains a relatively small buffer given current liabilities and long-term debt levels.
• Negative Historical Equity and Losses: The company has a history of negative net assets and accumulated losses through 2023, indicating past operational challenges and raising questions about financial stability.

3. Positive Indicators:

• Improved Net Assets: The company reversed a net liability of £-8,717 in 2023 to a net asset position of £742 in 2024, showing progress in financial health.
• Compliance and Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance and governance.
• Increasing Debtors and Cash: Debtors increased from £4,565 to £8,122 and cash on hand rose substantially, indicating potentially improved revenue collection and liquidity management.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans, including interest rates, covenants, and repayment schedules, to assess refinancing risks.
• Review detailed profit and loss accounts (not filed publicly) to understand profitability trends, cash flow from operations, and sustainability of the recent asset improvement.
• Confirm the company’s business model viability in the temporary employment and construction sectors, especially given the diverse SIC codes and the small scale of operations (one employee).
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in the filleted accounts.
• Verify the director’s experience and background given sole directorship and the company’s financial history.