Company Number: 13022623

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: LOW

Justification: VSM GROUP LIMITED is a micro-entity with modest but positive net current assets and net assets over the last several years. The company is active, compliant with filing deadlines, and shows no indication of insolvency or liquidation. Its sole director and 100% shareholder appears stable.

2. Key Concerns:

• Significant decline in current assets from £32,709 (2020) to £950 (2023), suggesting a material reduction in liquidity over time.
• Shareholders’ funds have decreased markedly from £18,136 (2020) to £947 (2023), which may indicate accumulated losses or capital withdrawals.
• Limited scale and size as a micro-entity with only two employees, which could constrain operational capacity and resilience.

3. Positive Indicators:

• The company has consistently maintained positive net current assets and net assets each year, indicating solvency.
• Compliance with statutory filing requirements is up to date, reducing regulatory risk.
• Ownership and management are consolidated under a single director and shareholder, which may streamline decision-making.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in current assets and shareholders’ funds since 2020 to assess sustainability.
• Review the company’s cash flow statements and profit and loss accounts (if available) for evidence of profitability or losses.
• Confirm business model viability and client base given the small employee count and limited financial scale.
• Verify absence of any contingent liabilities or off-balance-sheet risks not captured in micro-entity filings.
• Assess director’s background for any past regulatory or financial issues beyond the provided data.