AVR PROPERTY LTD

Executive Summary

AVR PROPERTY LTD is a recently incorporated micro-entity in the real estate sector showing a weak financial position with negative net assets and net current liabilities. While regulatory compliance is maintained and the director has full control, the company currently faces significant solvency and liquidity risks. Further investigation into operational cash flows and creditor arrangements is recommended to fully assess financial sustainability.

AVR PROPERTY LTD - Analysis Report

Company Number: 14655005

Analysis Date: 2025-07-29 16:39 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets (£-41,830) and net current liabilities (£-78,415) despite being newly incorporated. The presence of long-term creditors exceeding fixed assets signals solvency concerns at this early stage.

2. Key Concerns:

• Negative net assets and net liabilities indicate the company is currently insolvent on a balance sheet basis.
• Net current liabilities suggest liquidity risk; current obligations exceed current assets by a significant margin, potentially impairing ability to meet short-term debts.
• The company is very recently incorporated (2023) and has minimal operating history, which limits visibility on operational stability and profitability.

3. Positive Indicators:

• The company is up to date with all statutory filings (accounts and confirmation statement) with no overdue returns, indicating regulatory compliance and governance discipline.
• The director is also the sole significant controller holding majority share and voting rights, which could facilitate swift decision-making.
• The business operates in real estate letting/operating sector (SIC 68209), a potentially stable income source if assets generate rental revenue.

4. Due Diligence Notes:

• Review detailed financials beyond the filleted accounts, especially the profit and loss account and cash flow statements to assess operational performance and cash flow adequacy.
• Investigate the nature and terms of the £104,250 creditors falling due after one year to understand repayment obligations and refinancing risks.
• Confirm whether the fixed assets (£140,835) are income-generating properties or other assets.
• Clarify if any related party transactions or director loans exist that may impact financial stability.
• Assess business plan viability given negative equity position and early stage of operations.