Company Number: 13558358

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AVT Campers Ltd demonstrates a positive net asset position and working capital, indicating an ability to meet short-term liabilities. However, the recent decline in net assets and cash reserves compared to the previous year suggests some caution. The company is still relatively young (incorporated in 2021) but active in a niche market (VW campervan conversions and used light motor vehicles), which may have variable demand. The departure of one director earlier in 2025 should be monitored, though the remaining management team retains significant shareholding and control. Credit approval is recommended with conditions such as periodic financial reviews and maintenance of healthy liquidity levels.

2. Financial Strength:

• Net assets decreased from £291,164 (2023) to £207,203 (2024), a 29% reduction, mainly due to lowered cash and debtor balances.
• Fixed assets are modest (£21,652) and depreciating, indicating limited capital intensity.
• Current assets remain robust (£628,866), with a large stock increase from £136,482 to £406,482, which may tie up liquidity and require close stock management.
• Current liabilities are substantial (£443,315), but net current assets remain positive at £185,551, showing short-term solvency.
• Share capital is minimal (£3), typical for SMEs, with profits accumulated in reserves.

3. Cash Flow Assessment:

• Cash at bank has sharply reduced from £221,913 to £83,980, which may strain day-to-day liquidity.
• Debtors have also declined significantly (£440,373 to £138,404), possibly relating to improved collection or decreased sales.
• The sharp increase in stock suggests cash is tied up in inventory, potentially impacting cash flow flexibility.
• Positive net current assets indicate working capital is sufficient but requires monitoring, especially given the cash drop.
• No audit or detailed income statement filed, so profitability and operational cash flow cannot be fully assessed.

4. Monitoring Points:

• Track cash balances and debtor collection closely to avoid liquidity shortfalls.
• Monitor stock levels to ensure inventory turnover is efficient and does not adversely affect cash flow.
• Watch for any further changes in director appointments and management stability.
• Review subsequent filings for profitability trends and any indications of financial strain.
• Confirm client base stability and market demand in the niche campervan conversion sector.