AVRAM INSTALLING LTD

Executive Summary

Avram Installing Ltd is a small, privately controlled construction company that remains solvent but has experienced a notable decline in net assets and increased current liabilities over the last year. Its regulatory compliance is sound, but limited operational scale and rising liabilities present moderate risk concerns. Further investigation into liquidity, receivables quality, and operational sustainability is recommended.

AVRAM INSTALLING LTD - Analysis Report

Company Number: 12953251

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: MEDIUM
   The company shows a modest but declining net asset base and working capital. While it remains solvent with positive shareholders' funds, the decrease in net current assets and net assets from £4,188 in 2022 to £2,238 in 2023 warrants caution. The company is small, with limited financial resources and only one employee (the director), which may impact operational resilience.

2. Key Concerns:

• Declining net current assets and net assets over the last year indicate potential weakening financial stability.
• Current liabilities have increased significantly from £2,612 in 2022 to £4,406 in 2023, mainly taxes and social security, which could pressure liquidity.
• Reliance on a single director and minimal staffing raises operational risk and potential vulnerability to absence or capacity constraints.

3. Positive Indicators:

• The company is compliant with both accounts and confirmation statement filing deadlines, indicating good regulatory governance to date.
• Maintains a positive net working capital, suggesting it can meet short-term obligations currently.
• The director has full control and ownership, which may allow for agile decision-making and streamlined management.

4. Due Diligence Notes:

• Investigate reasons behind the increase in current liabilities, particularly taxes and social security, to assess if this is a temporary timing issue or a recurring problem.
• Review cash flow statements and profit & loss details (not provided here) to understand operational profitability and cash generation capacity.
• Confirm the nature and collectability of debtors, as a significant portion of current assets is tied up in receivables.
• Assess the sustainability of the business model given the minimal staffing and small scale, including market position and customer base.
• Verify any contingent liabilities or off-balance-sheet risks not evident from the accounts.