VTB INVEST LTD

Executive Summary

VTB INVEST LTD, a young private limited company, displays strong liquidity and solvency with positive working capital and shareholder equity. However, the absence of detailed profitability data and reliance on related party creditors warrant cautious monitoring. With improved financial transparency and strategic growth focus, the company is positioned for stable future financial health.

VTB INVEST LTD - Analysis Report

Company Number: 14314915

Analysis Date: 2025-07-20 11:53 UTC

VTB INVEST LTD — Financial Health Assessment

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1. Financial Health Score: B

Explanation:
A "B" grade reflects a generally sound financial position with positive net current assets and shareholder funds. The company is young (just over 1 year since incorporation) and shows a healthy cash position relative to current liabilities. However, the presence of related party creditors and absence of income statement data limit a full assessment. The company’s financial "vital signs" indicate early-stage stability but also early "symptoms" that suggest close monitoring is prudent.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	111,292	Healthy cash reserve providing liquidity buffer.
Current Liabilities	72,936	Manageable short-term liabilities, primarily related party debt and corporation tax.
Net Current Assets (Working Capital)	38,356	Positive working capital indicates ability to cover short-term debts with short-term assets.
Shareholders’ Funds (Equity)	38,356	Indicates net asset value; positive equity suggests solvency.
Related Party Creditors	63,436	Significant related party debt may represent internal financing or short-term borrowing.
Employee Count	1	Very small workforce consistent with micro/small company profile.
Turnover & Profit Info	Not disclosed	Lack of income statement data restricts cash generation and profitability analysis.

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3. Diagnosis

• Liquidity & Solvency:
  VTB INVEST LTD exhibits "healthy cash flow" at a snapshot, with cash exceeding current liabilities, indicating no immediate liquidity distress. The positive net current assets and shareholders’ funds suggest the company is solvent and able to meet its obligations on time.

• Capital Structure:
  The company has minimal called-up share capital (£1) but positive retained earnings (£38,355), indicating some accumulated profits or reserves. The reliance on related party creditors (£63,436) hints at internal funding support rather than external debt, which may reduce financial risk but increase dependency on parent or sister entities.

• Operating Performance:
  The absence of a profit and loss account (due to filing exemptions) is a "symptom" limiting the ability to assess operating profitability, revenue growth, and cost control. Since there is no reported turnover or expense data, it is unclear if the company is generating sustainable income or relying on capital injections.

• Company Age & Size:
  Incorporated in August 2022, VTB INVEST LTD is in the infancy stage of its business lifecycle. Its small scale and single employee status align with micro/small company thresholds, reducing regulatory burdens but also indicating limited operational scale.

• Industry Context:
  Classified under management consultancy, real estate agencies, and other service activities, the company operates in sectors that can be capital-light but depend heavily on client acquisition and contract wins. Financial health will be sensitive to market conditions and client relationships.

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4. Recommendations

1. Enhance Revenue Transparency:
   Consider voluntarily disclosing more detailed financial performance data (turnover, profit/loss) in future accounts to provide stakeholders with visibility into operational health.

2. Monitor Related Party Transactions:
   Closely track and formalize related party loans/creditors to ensure clear terms and avoid potential conflicts of interest or cash flow strain. Establish repayment or equity conversion mechanisms if appropriate.

3. Cash Flow Management:
   Maintain a healthy liquidity buffer as currently shown. Plan for potential cash outflows related to tax or operational expenses to avoid liquidity "symptoms" such as late payments or overdrafts.

4. Growth & Scalability Planning:
   Develop a strategic plan for client acquisition and revenue growth to move beyond initial capital phase. This will support sustainable profitability and reduce reliance on related party funding.

5. Governance & Compliance:
   Ensure continued timely filings of accounts and confirmation statements to avoid penalties and demonstrate good governance.

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Medical Analogy Summary

VTB INVEST LTD currently shows "healthy vital signs" with a strong cash buffer and positive net assets, much like a patient with stable blood pressure and pulse. However, the "symptoms" of missing income data and significant related party debt suggest the need for closer monitoring and transparency to prevent future financial distress. With proper management and strategic growth, the company's financial health outlook is cautiously optimistic.

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