AVAJAK PROPERTIES LTD

Executive Summary

Avajak Properties Ltd is a micro-entity in its infancy, showing significant financial weakness with negative net assets and insufficient liquidity to cover immediate liabilities. The current financial position does not support credit extension without substantial improvement in capital structure or demonstrated cash flow. Close monitoring of trading progress and financial support from shareholders is essential before reconsidering credit facilities.

AVAJAK PROPERTIES LTD - Analysis Report

Company Number: 14926154

Analysis Date: 2025-07-29 13:07 UTC

1. Credit Opinion: DECLINE
   Avajak Properties Ltd is a newly incorporated micro-entity with very limited financial history and an immediate liquidity shortfall. The company’s net current liabilities of £733 and negative shareholders’ funds indicate an undercapitalised position with insufficient short-term assets to meet liabilities. Given the absence of operating income, negligible current assets (£100), and a working capital deficit, the company shows weak ability to service any debt or credit facility at this stage. Without evidence of cash flow generation or external financial support, credit risk is high.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Total current liabilities significantly exceed current assets, resulting in negative net current assets and shareholders’ funds. Share capital is minimal at £200, indicating low initial equity investment. The company operates with no employees and no fixed assets reported, consistent with a start-up stage or a shell entity. The negative net assets position shows accumulated losses or unpaid liabilities, undermining financial stability.

3. Cash Flow Assessment:
   Liquidity is critically constrained. With only £100 in current assets (likely cash or equivalents) against £833 in creditors due within one year, the company faces immediate working capital insufficiency. There is no indication of ongoing revenue or cash inflows to cover short-term obligations. The absence of audit exemption confirms limited turnover and size but also limits insight into operational cash flow. Without external funding or asset sales, the company is at risk of default on payables.

4. Monitoring Points:

• Subsequent trading performance and filing of next accounts to assess revenue generation
• Changes in working capital and current asset base improvements
• Capital injections or shareholder loans to bolster equity and liquidity
• Director actions to manage liabilities and secure funding
• Any late filings or signs of financial distress such as going concern qualifications