ADVADANET LIMITED

Executive Summary

ADVADANET LIMITED demonstrates an improving financial position with positive net assets and sufficient liquidity to cover current liabilities. Despite its small size and recent establishment, the company shows early signs of financial stability suitable for limited credit exposure. Ongoing monitoring of cash flows and profitability is recommended to ensure sustained creditworthiness.

ADVADANET LIMITED - Analysis Report

Company Number: 14244876

Analysis Date: 2025-07-29 18:15 UTC

1. Credit Opinion: APPROVE (with caution) ADVADANET LIMITED is a recently incorporated private limited company (July 2022) operating in advertising and IT consultancy. Its latest filed accounts as of 31 July 2024 show a positive turnaround with net assets of £6,848 and net current assets of £6,848, up from a negative net asset position in 2022. The company’s cash position improved to £8,562, comfortably covering its current liabilities of £1,714. While the company is very small with no employees and limited trading history, the improving financial position and positive working capital indicate an ability to meet short-term obligations. However, given its infancy and small scale, credit exposure should be limited and closely monitored.

2. Financial Strength: The balance sheet shows steady improvement:

• Net assets increased from a deficit of £459 in 2023 to a positive £6,848 in 2024.
• Shareholder funds improved accordingly, reflecting retained earnings accumulation.
• Current liabilities are low (£1,714) and consist mainly of taxation and social security costs.
• The company holds no fixed assets, which is typical for its sector and size. Overall, the financial strength is currently modest but improving, with no material long-term liabilities or gearing.

3. Cash Flow Assessment: Cash at bank increased significantly from £100 in 2023 to £8,562 in 2024, indicating improved liquidity. Net current assets are positive, showing working capital adequacy. The company has no reported employees or payroll expenses, which reduces cash outflow pressures. No evidence of overdrafts or short-term borrowing is noted. This liquidity profile supports timely payment of current obligations and modest credit lines if needed.

4. Monitoring Points:

• Continued revenue growth and profitability to sustain and build shareholder funds.
• Maintain positive working capital and cash reserves, especially as business operations scale.
• Monitor tax liabilities and ensure timely payment to avoid creditor risk.
• Watch for any increase in creditors or borrowing that may strain liquidity.
• Assess management’s ability to generate consistent cash flows given zero employee count and nascent trading history.