VSA SCAFFOLDING LTD

Executive Summary

VSA Scaffolding Ltd is a micro-entity operating in scaffold erection and construction installation, currently compliant with statutory requirements. However, the company shows a notable reduction in net assets and liquidity which warrants closer examination of its operational cash flows and financial resilience. Further due diligence is recommended to clarify sustainability and underlying causes of the financial decline.

VSA SCAFFOLDING LTD - Analysis Report

Company Number: 12991012

Analysis Date: 2025-07-19 12:05 UTC

1. Risk Rating: MEDIUM
   The company is currently active with no overdue filings, which is positive. However, the financial data indicates a significant decline in net assets from £6,835 in 2022 to £2,255 in 2023 and a sharp drop in current assets, which could signal emerging liquidity pressures. The micro-entity size limits financial disclosure detail, constraining in-depth risk assessment.

2. Key Concerns:

• Declining Net Assets: Net assets have reduced by approximately 67% over the past year, which could reflect operational challenges or asset disposals.
• Reduced Current Assets and Working Capital: Current assets fell from £15,081 to £2,695, while net current assets declined substantially, suggesting tightening liquidity.
• Limited Financial Transparency: As a micro-entity, the company provides minimal financial disclosures, limiting insight into profitability, cash flows, or contingent liabilities.

3. Positive Indicators:

• Compliance: The company is up to date with its statutory filings (accounts and confirmation statement) and is not in liquidation or administration.
• Positive Net Current Assets: Despite decline, net current assets remain positive at £2,155, indicating the company currently meets short-term obligations.
• Stable Management: The sole director has been in place since incorporation, implying continuity in governance.

4. Due Diligence Notes:

• Review detailed management accounts and cash flow statements to assess operational cash generation and short-term liquidity beyond year-end snapshots.
• Investigate reasons behind the sharp decline in current assets and net assets—whether due to reduced receivables, asset sales, or other factors.
• Assess order book, client concentration, and contract pipeline to evaluate operational sustainability given the small scale and recent declines.
• Confirm if there are any off-balance sheet liabilities or contingent risks not disclosed in micro-entity accounts.
• Verify director background and any potential related party transactions, considering the single director structure.