ASSET VALUATIONS LIMITED

Executive Summary

Asset Valuations Limited, a newly incorporated micro-entity, exhibits financial strain with negative net assets and working capital deficits at its first year-end. While regulatory compliance is satisfactory, the company’s early stage and current balance sheet position reflect high solvency and liquidity risk. Close monitoring and further review of operational plans and funding sources are advised to assess potential recovery and sustainability.

ASSET VALUATIONS LIMITED - Analysis Report

Company Number: 15199861

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current liabilities within its first financial period, indicating potential solvency and liquidity issues. The limited operating history and micro-entity scale contribute to the elevated risk profile.

2. Key Concerns:

• Negative Net Assets: The balance sheet reflects net liabilities of £615, indicating the company’s liabilities exceed its assets.
• Insufficient Working Capital: Net current assets are negative at £-2,460, suggesting potential challenges in meeting short-term obligations.
• Early Stage Financials: Incorporated only in October 2023, the company lacks an operating track record, increasing uncertainty around future operational stability and cash flow generation.

3. Positive Indicators:

• Compliance: All filings (accounts and confirmation statements) are up to date with no overdue returns or accounts, indicating good regulatory compliance for a new company.
• Sole Control by Director: The sole director, Mr. Christopher Shone, holds 75-100% ownership and control, which can facilitate swift decision-making and strategic direction.
• Small Scale Operation: The company qualifies under micro-entity provisions, reducing administrative burdens and potential complexity.

4. Due Diligence Notes:

• Review the company’s business plan and cash flow forecasts to assess how it intends to address the negative net assets and improve liquidity.
• Investigate the nature and timing of current liabilities to understand any immediate payment pressures.
• Clarify the source of funding (e.g., director loans, external investment) supporting the company’s operations to date.
• Monitor subsequent filings for improvements in financial position and operating performance.
• Confirm the director’s background and capacity to manage turnaround or growth given sole control.