AEVUM DEVELOPMENTS LTD

Executive Summary

AEVUM DEVELOPMENTS LTD demonstrates compliance with statutory requirements and maintains positive net current assets in the latest reported year, suggesting limited immediate solvency risk. However, the company’s low equity base, volatile working capital, and concentrated control by directors with limited evident financial expertise present medium-level risks. Further due diligence on cash flow management and operational capacity is recommended to better understand the company’s financial stability and sustainability.

AEVUM DEVELOPMENTS LTD - Analysis Report

Company Number: 12708226

Analysis Date: 2025-07-20 17:16 UTC

1. Risk Rating: MEDIUM
   While the company is currently active and compliant with filings, the financial data reveals modest net current assets and fluctuating working capital positions. The low share capital and small operational scale increase exposure to financial stress, but there is no evidence of immediate insolvency.

2. Key Concerns:

• Low Share Capital and Equity Base: Share capital is only £2.00 with shareholders’ funds fluctuating and relatively low at £1,852 in 2024, reflecting limited financial buffer against losses.
• Working Capital Volatility: Net current assets swung from negative (£-64) in 2022 to positive £1,852 in 2024, indicating inconsistent liquidity management and potential cash flow pressures.
• Concentration of Control and Limited Management Depth: Two directors (both carpenters by occupation) hold significant control (each 25-50%), which may indicate limited management diversity and experience in corporate or financial governance.

3. Positive Indicators:

• Regulatory Compliance: No overdue filings or accounts; next filings are scheduled appropriately, indicating good governance on statutory obligations.
• Positive Net Current Assets in Latest Year: The company reported net current assets of £1,852 at 30 June 2024, suggesting an ability to meet short-term liabilities currently.
• Business Activity Aligned with Industry: SIC code 41100 indicates development of building projects, consistent with directors’ occupation and likely operational focus, suggesting business alignment.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To assess liquidity trends beyond balance sheet snapshots, particularly how the company manages cash receipts and payments given fluctuating debtors and creditors.
• Review Debtor and Creditor Aging: The significant change in debtors (£22,488 in 2023 to £2,127 in 2024) and other creditors requires scrutiny to understand collection risk and payment obligations.
• Assess Directors’ Experience and Operational Capacity: Given directors' background as carpenters and control concentration, investigate operational expertise and management capabilities.
• Investigate Bank Loans and Overdrafts: The loans increased to £3,886 in 2024 from £1,588 in 2023, so understanding terms and repayment capacity is important.
• Confirm No Related Party Transactions or Contingent Liabilities: To identify potential hidden risks not evident from the financial statements.