VYAS & VYAS LIMITED

Executive Summary

VYAS & VYAS LIMITED demonstrates a sound asset base in real estate but faces liquidity challenges indicated by negative working capital and high short-term liabilities. The company is operationally stable with modest equity growth but should focus on improving cash flow and managing debt to mitigate financial risks. Proactive liquidity management and potential refinancing are key to sustaining financial wellness.

VYAS & VYAS LIMITED - Analysis Report

Company Number: 13148137

Analysis Date: 2025-07-29 20:51 UTC

Financial Health Assessment for VYAS & VYAS LIMITED

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1. Financial Health Score: C

Explanation:
The company shows stable asset holdings and modest growth in net assets, but there are warning signs relating to the structure of liabilities and working capital management. The score reflects a company that is operationally stable but with some financial stress symptoms that require monitoring and corrective action.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	110,119	Significant long-term investment in property or real estate, which aligns with industry SIC codes indicating real estate activities.
Current Assets	4,648	Low liquid assets; cash or equivalents are minimal, posing potential liquidity risks.
Current Liabilities	44,133	High short-term debts that must be settled within a year, exceeding current assets.
Net Current Assets	-39,485	Negative working capital, indicating potential cash flow constraints and difficulty meeting short-term obligations.
Creditors >1 year	67,482	Significant long-term liabilities, possibly mortgage or loans secured against fixed assets.
Net Assets (Equity)	2,902	Positive but low net equity, showing limited buffer against liabilities.
Share Capital	2	Minimal share capital, typical for micro-entities but limits equity base.
Employee Count	0	No employees, suggesting owner-managed or outsourced operations.

Interpretation:

• The company's fixed asset base is strong and stable, reflecting investment in real estate holdings.
• However, the negative net current assets ("working capital deficit") is a symptom of financial strain in liquidity and short-term cash flow health.
• The large amount of long-term creditors suggests the company is leveraged, likely through secured loans against property assets.
• The rise in net assets from £482 to £2,902 over the last year indicates some improvement in retained earnings or reduction of losses, but the absolute equity remains low.
• No employees reduces operational overhead but may limit growth capacity.

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3. Diagnosis

The financial "vital signs" paint a mixed picture. The company is like a patient with a strong skeletal frame (fixed assets in real estate) but with weak circulation (poor liquidity). The chronic symptom of negative working capital indicates difficulty in meeting short-term liabilities from current assets, which could lead to cash flow distress if not managed carefully.

The reliance on long-term creditors shows the company is financing its asset base through debt, which is common in real estate but increases financial risk, especially if income streams (rental or sales revenues) are unstable or insufficient to service debt costs.

The slight improvement in net assets is encouraging but still leaves a narrow equity cushion. The absence of employees implies a lean operational model, possibly reducing fixed costs but also limiting operational scalability.

Overall, the company is stable but vulnerable to liquidity shocks or downturns in the real estate market or rental income. The financial condition is not critical but warrants attention to cash flow management.

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4. Recommendations

• Improve Liquidity: Seek to boost current assets, particularly cash or receivables, to cover short-term liabilities. This could involve accelerating rent collections, reviewing payment terms, or securing short-term finance lines as a buffer.
• Restructure Debt if Possible: Explore refinancing options to reduce current liabilities or extend short-term debt into longer maturities to ease immediate cash pressure. Negotiating with creditors could improve financial breathing room.
• Enhance Equity Base: Consider capital injections or retaining more profits within the company to strengthen net assets, providing a healthier financial buffer.
• Operational Review: Although no employees are currently recorded, assess if operational efficiencies or outsourcing can be optimized to support business growth without increasing fixed costs excessively.
• Cash Flow Monitoring: Implement rigorous cash flow forecasting and monitoring to detect early signs of distress and respond proactively.
• Market Positioning: Given the real estate focus, continuously assess property market conditions and occupancy rates to ensure sustainable revenue streams to service debt and operating costs.

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