APV INVESTMENTS LIMITED

Executive Summary

APV INVESTMENTS LIMITED is a micro-entity operating in real estate management with persistent negative equity and working capital deficits, reflecting weak financial health and high leverage. The company’s current financial structure raises concerns about its ability to meet debt obligations and sustain operations without external support. Therefore, from a credit risk standpoint, the recommendation is to decline additional credit facilities until a clear turnaround is demonstrated.

APV INVESTMENTS LIMITED - Analysis Report

Company Number: 12661615

Analysis Date: 2025-07-20 16:24 UTC

1. Credit Opinion: DECLINE

APV INVESTMENTS LIMITED exhibits a weak financial position with persistent net liabilities and negative shareholders’ funds over the last five years. The company’s net assets are negative (£-11,468 as of June 2024) and deteriorated from the prior year, indicating an ongoing erosion of equity. Current liabilities exceed current assets, resulting in negative net current assets (working capital deficit). The substantial long-term creditors (£420,445) compared to fixed assets (£411,407) show high leverage and possible liquidity stress. The lack of profitability information and absence of audit also limit transparency. Given these factors, the company appears unable to comfortably service additional credit without significant financial restructuring or external support.

2. Financial Strength:

• Fixed assets remain stable at £411,407, primarily invested in real estate-related operations.
• Current assets are minimal (£11,861), while current liabilities stand at £14,291, causing a working capital shortfall of about £2,430.
• Long-term liabilities exceed fixed assets, driving a net liability position and negative equity of £11,468.
• Share capital is nominal (£2), suggesting limited capital buffer.
• No improvement trend; net liabilities have worsened compared with prior years, signaling continued financial strain.

3. Cash Flow Assessment:

• Negative net current assets indicate potential liquidity constraints.
• The company’s ability to meet short-term obligations is questionable given the working capital deficit.
• The accounts do not disclose operating cash flows, but the balance sheet suggests cash flow from operations is insufficient to cover liabilities.
• The business may rely on creditor financing or shareholder injections to sustain operations, which is not ideal from a credit perspective.

4. Monitoring Points:

• Monitor changes in net current assets and liquidity ratios closely.
• Watch for improvements in net asset position and reduction of long-term debt.
• Track profitability or cash flow disclosures in future filings to assess operational performance.
• Review director conduct and any changes in shareholding or management, particularly given the concentrated control by directors.
• Confirm timely filing of accounts and any indications of financial distress or restructuring.