Company Number: 13193472

Analysis Date: 2025-07-29 17:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL AVA Partners Limited is a relatively new private limited company engaged in letting and operating its own or leased real estate. The company has a sizable investment property portfolio valued at £2.44 million as of February 2024. However, it exhibits very weak liquidity, with net current liabilities exceeding £2 million and minimal cash reserves (£1,693). The company’s financial statements are prepared on a going concern basis supported by shareholder willingness to provide ongoing financial support. Given the high current liabilities relative to current assets and cash, credit approval should be conditional on obtaining explicit shareholder support confirmation and monitoring liquidity closely.

2. Financial Strength:

• The company’s net assets stand at £253,710, largely supported by fixed assets (investment property and tangible assets) totaling approximately £2.46 million.
• Net current liabilities have increased to £2,087,116, indicating short-term financial pressure.
• Deferred tax liability increased significantly to £119,406, reflecting timing differences likely related to investment property revaluation gains.
• Shareholders' funds increased to £358,216 in the non-distributable profit and loss account, offset by a negative distributable profit and loss of £104,606.
• The balance sheet shows a strong fixed asset base but weak short-term financial health.

3. Cash Flow Assessment:

• Cash at bank has drastically decreased from £39,223 in 2023 to £1,693 in 2024, indicating a considerable cash outflow or liquidity tightening.
• Current assets (including debtors and cash) total only £2,245 versus current liabilities of over £2 million, resulting in a substantial working capital deficit.
• The company relies heavily on shareholder support to meet short-term obligations as internal liquidity is insufficient.
• Minimal debtor balances and no indication of significant receivables turnover suggests limited short-term cash generation capacity.

4. Monitoring Points:

• Liquidity position: Monitor cash balances and working capital monthly to ensure the company can meet short-term liabilities.
• Shareholder support: Regular confirmation from shareholders regarding their willingness and ability to provide financial support.
• Investment property valuation: Track any changes in market value which could impact asset base and deferred tax liabilities.
• Profitability and cash flow: Review future trading results and cash flow forecasts to assess ongoing viability without shareholder funding.
• Debt obligations: Monitor creditor payment terms and any changes in current liabilities to avoid solvency risk.