Company Number: 14225457

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: DECLINE. AV.NA.CO LTD exhibits signs of financial distress with net liabilities worsening significantly from -£467 in 2023 to -£10,987 in 2024. The company’s current liabilities have increased markedly, particularly amounts due to directors (£12,939), indicating reliance on related party funding rather than operational cash flows. The negative shareholders’ funds and worsening net asset position undermine the company’s ability to service external debt. Without evidence of profitability or external financing sources, the risk of non-repayment is high.

2. Financial Strength: The balance sheet is weak, with net liabilities of £10,987. Fixed assets remain minimal (£1,405) and current assets are low (£682), insufficient to cover current liabilities which stand at £12,939. Net current assets are positive (£547) but this is misleading given the total liabilities beyond one year (£12,939) are significantly above total assets. The company’s micro-entity status limits disclosure but the financial trajectory is negative, indicating deteriorating financial health.

3. Cash Flow Assessment: Current assets are very limited and unlikely to generate sufficient liquidity. The company’s working capital management appears strained, with current liabilities massively exceeding current assets. The high director-related debt suggests that the company depends on director loans to maintain operations, indicating poor cash flow from operations. This raises concerns about the company’s ability to meet short-term obligations and honor credit facilities.

4. Monitoring Points:

• Monitor trends in net liabilities and shareholder funds for improvement or further deterioration.
• Review director loans and related party transactions closely for signs of refinancing or withdrawal.
• Watch for changes in current liabilities and ability to reduce short-term debts.
• Track any filing of audited accounts or management commentary indicating turnaround plans or new financing.
• Assess any changes in business operations or sector risks given diverse SIC codes including air transport and professional services.