AVJ LIMITED

Executive Summary

AVJ LIMITED is a micro-entity with a solvent balance sheet but showing a decline in net current assets and shareholders funds in its latest financial year, warranting caution. The company complies with filing requirements and maintains clear director accountability, but limited operational history and concentrated control pose governance and sustainability considerations. Further financial and operational due diligence is recommended to clarify emerging risks.

AVJ LIMITED - Analysis Report

Company Number: 13648299

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: MEDIUM

The company shows a positive net current asset position and shareholder funds, indicating solvency at the reporting date. However, a notable decline in net current assets and shareholders funds in the latest financial year signals emerging financial pressure that warrants close monitoring.

2. Key Concerns:

• Declining Net Current Assets and Equity: Shareholders funds have decreased from £12,389 in 2023 to £6,893 in 2024 and net current assets similarly dropped, potentially indicating reduced liquidity and weakening financial stability.
• Limited Financial History and Size: As a micro-entity incorporated in 2021, the company has a short operating history and limited scale (1 employee), constraining the ability to assess operational resilience and cash flow sustainability fully.
• Concentration of Control: Two directors each hold significant ownership and voting rights (25-50%), which may pose governance risks or limit independent oversight.

3. Positive Indicators:

• Compliance and Filing Status: All statutory filings, including accounts and confirmation statements, are up to date with no overdue returns or accounts, reflecting good regulatory compliance.
• Solvent Balance Sheet: The company maintains positive net current assets and shareholders funds, indicating it can currently meet its short-term obligations.
• Clear Director Accountability: The directors are identified, and there are no records of disqualification or adverse regulatory flags.

4. Due Diligence Notes:

• Investigate reasons behind the reduction in net current assets and equity between 2023 and 2024 to determine if this is a one-off event or indicative of ongoing operational or financial difficulties.
• Review detailed profit and loss data and cash flow statements (not available here) to assess revenue trends, profitability, and liquidity dynamics.
• Confirm the nature of physical well-being and management consultancy activities to evaluate business diversification and revenue sources.
• Conduct governance review given the concentrated ownership and voting rights, particularly regarding decision-making and risk oversight.
• Validate the director appointment dates and any changes to understand management stability and strategy continuity.