ADVENTICS LTD

Executive Summary

Adventics Ltd presents a financially sound profile characterized by strong liquidity and growing equity, underpinned by consistent compliance with filing obligations. The company’s low fixed asset base and reliance on a director loan are points to monitor, but overall solvency and operational stability appear robust. Further inquiry into profitability and tax management would provide a more comprehensive risk assessment.

ADVENTICS LTD - Analysis Report

Company Number: 12498571

Analysis Date: 2025-07-20 11:43 UTC

1. Risk Rating: LOW
   Adventics Ltd demonstrates a solid financial position with strong net current assets and net assets that have grown consistently over the last four years. The company is compliant with filing deadlines, has no overdue accounts or returns, and is not in liquidation or any insolvency process. These factors support a low-risk rating regarding solvency and liquidity.

2. Key Concerns:

• Reliance on director’s loan account: The significant debtor balance (£18,227 in 2024) is composed entirely of an unsecured, interest-free director loan repayable on demand. This could present a liquidity risk if the director demands repayment or if the loan is needed to support working capital.
• Modest fixed asset base: Tangible fixed assets are minimal and declining (down from £8,231 in 2021 to £4,862 in 2024), indicating limited investment in long-term operational capacity. This may limit the company’s ability to scale or diversify.
• Tax liabilities: There is a corporation tax creditor of £21,601 as of 2024, which although manageable given cash balances, requires monitoring to ensure timely settlement and avoid penalties.

3. Positive Indicators:

• Strong liquidity position: Cash on hand increased significantly to £187,315 in 2024 from £115,975 in 2021, and net current assets have risen to £178,665, indicating a healthy cash flow and ability to meet short-term obligations.
• Growing equity base: Shareholders’ funds increased from £75,363 in 2021 to £183,427 in 2024, reflecting retained earnings and a strengthening capital structure.
• Compliance and governance: The company is active, not in liquidation, and has no overdue statutory filings. The sole director holds complete control but appears stable with no adverse information. The company has opted for a total exemption full account filing consistent with its small company status, demonstrating compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan in more detail, including any plans for repayment or additional borrowing, to assess liquidity risk more precisely.
• Review turnover and profitability trends (not provided here) to verify operational sustainability beyond the balance sheet strength.
• Confirm that corporation tax and VAT liabilities are being managed appropriately and that there are no outstanding disputes with HMRC.
• Assess dependency on the single director for operations and control, evaluating any key person risk given the 100% ownership and management concentration.