AVOCON LTD LTD

Executive Summary

Avocon Ltd Ltd is a recently established private limited company operating in the aircraft repair sector with modest financial resources and a sole director/shareholder structure. While compliance with filing requirements is satisfactory, the company’s limited capital base and reliance on director loans present medium solvency and liquidity risks. Close monitoring of operational progress and financial performance is advised to evaluate sustainability.

AVOCON LTD LTD - Analysis Report

Company Number: 14959621

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (June 2023) with minimal financial history, modest net assets (£303), and very limited cash (£2,160). While it currently has positive net current assets, the scale is small and the company is reliant on related party loans. There is no indication of distress, but the limited financial base and startup status elevate the risk profile to medium.

2. Key Concerns:

• Limited Financial Resources: Net assets and working capital are minimal, which may restrict operational flexibility and ability to meet unexpected liabilities.
• Related Party Loan Dependency: The company is owed £2,650 by its sole director/shareholder, indicating reliance on director financing rather than external funding or operating cash flow.
• Single Director and Employee: The company has only one director who is also the sole shareholder and sole employee, which concentrates operational and governance risk.

3. Positive Indicators:

• Timely Filing and Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and shareholder holds 75-100% control, which simplifies decision-making and accountability.
• Industry Niche: The company is classified in the repair and maintenance of aircraft and spacecraft (SIC 33160), which could be a specialized sector with potential for growth if operationally executed well.

4. Due Diligence Notes:

• Review Business Plan and Cash Flow Projections: Assess how the company plans to generate sustainable revenue and improve liquidity beyond director loans.
• Confirm Director’s Capacity and Experience: Given the director’s occupation as an aircraft technician, evaluate his ability to manage the business side effectively.
• Investigate Related Party Transactions: Understand terms and intentions behind loans from the director and any other informal financing arrangements.
• Monitor Future Financial Filings: Watch for trends in turnover, profitability, and asset growth to reassess risk as the company matures.