ADVANTA INVEST LTD

Executive Summary

Advanta Invest Ltd exhibits a sound financial base with strong liquidity and equity funding, indicating a generally healthy financial condition for a young private limited company. However, incomplete financial reporting limits full assessment, and ongoing monitoring of secured borrowings and operational structure is advised to sustain financial wellness. Enhanced transparency and governance will support sustainable growth and risk management.

ADVANTA INVEST LTD - Analysis Report

Company Number: 12693508

Analysis Date: 2025-07-20 19:16 UTC

Financial Health Assessment of Advanta Invest Ltd

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1. Financial Health Score: B

Explanation:
Advanta Invest Ltd demonstrates a solid financial foundation typical for a relatively new private limited company. The company shows strong net current assets and shareholders' funds relative to liabilities, indicating good liquidity and solvency. However, limited financial data (only up to 2021) and absence of profit & loss details constrain a more precise evaluation. Therefore, a "B" grade reflects generally healthy financial status, with room for improvement through more comprehensive financial reporting and ongoing monitoring.

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2. Key Vital Signs

Vital Sign	Value (as of 31/03/2021)	Interpretation
Share Capital	£150,000	Reasonable equity base for a company incorporated in 2020; indicates invested shareholder funds.
Debtors (Current Assets)	£150,114	Significant receivables, primarily owed by group undertakings, showing intra-group financial support.
Current Liabilities	£600	Very low short-term obligations, indicating minimal immediate debt pressure.
Net Current Assets	£149,514	Strong working capital position ("healthy cash flow" indicator) ensuring ability to meet short-term commitments.
Shareholders' Funds (Net Assets)	£149,514	Positive net assets indicate the company’s solvency and cushion against financial distress.
Employees	Nil	No employees, indicating low operational overhead or outsourcing of key functions.
Financial Guarantees & Charges	Outstanding debentures secured by charges	Reflects borrowing or credit facilities secured against company assets; needs monitoring for covenant compliance.

Additional Context:

• The company is classified under SIC 64999, indicating financial intermediation activities not elsewhere classified, typical for discretionary investment management.
• Directors have changed over time, but the board currently includes experienced professionals, including an independent financial adviser.
• Going concern status affirmed by directors, supported by group company backing and ability to raise capital if needed.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity and Solvency: Advanta Invest Ltd displays excellent liquidity with net current assets far exceeding current liabilities, a sign of robust short-term financial health. The net assets position confirms solvency with equity backing all liabilities comfortably.
• Financial Structure: The company’s capital structure is primarily equity funded, reducing risk from debt financing. However, the presence of secured charges indicates some external financing reliance, which warrants attention to ensure covenants are met and no distress arises.
• Operational Health: The lack of employees and minimal creditors suggest a lean operational model, possibly relying on group resources or outsourcing. This could reduce fixed costs but may also limit operational flexibility.
• Reporting Completeness: Only one full set of accounts filed (year ended 2021) limits trend analysis. The absence of income statement details ("filleted" accounts) restricts insight into profitability, cash flow generation, and operational performance.
• Governance and Control: The company is active, with current directors in place having relevant financial expertise, supporting prudent management.

Symptoms of Distress: None evident from the limited data. The company’s financial “vitals” are strong with no immediate warning signs of liquidity squeeze, insolvency risk, or operational stress.

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4. Recommendations: Actions to Improve Financial Wellness

1. Enhanced Financial Reporting:

   • File comprehensive accounts including profit & loss and cash flow statements to provide stakeholders with a full picture of financial performance and sustainability.
   • Regularly update financial statements to track progress and early detect any financial “symptoms” of distress.

2. Monitor Secured Debentures:

   • Maintain strict oversight on the obligations under the debentures and charges to prevent covenant breaches.
   • Consider negotiating flexible terms or reducing secured debt if possible to lower financial risk.

3. Liquidity Management:

   • Although current liquidity is strong, maintain prudent cash flow forecasting given the company’s financial intermediation role and possible market volatility.
   • Ensure intra-group balances (debtors) remain collectible and monitor counterparty risk.

4. Governance and Succession Planning:

   • Continue to strengthen board expertise and consider succession planning to ensure stable leadership.
   • Regularly review director appointments and ensure compliance with fiduciary duties.

5. Operational Review:

   • Reassess the business model to evaluate if outsourcing/no employees remains optimal or if strategic hires could enhance growth and service delivery.

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