AVT GROUP HOLDINGS LTD

Executive Summary

AVT Group Holdings Ltd is a newly formed holding company with a modest cash position and positive short-term liquidity but currently holds negative net assets due to significant long-term liabilities. Credit approval should be conditional on understanding intercompany funding arrangements and the company’s plan to build equity and generate sustainable cash flows. Close monitoring of related party loans and financial filings is recommended to mitigate credit risk.

AVT GROUP HOLDINGS LTD - Analysis Report

Company Number: 15169839

Analysis Date: 2025-07-20 19:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. AVT Group Holdings Ltd is a newly incorporated private limited company (incorporated September 2023) operating as a holding company. The company’s net liabilities position and negative shareholders’ funds (-£414) raise concerns about its current financial strength. However, this is not uncommon for a newly formed holding company that has not yet begun significant trading or asset acquisition. The company currently relies on related party loans and has minimal operating activity (one employee). Approval for credit facilities should be contingent upon clarity of the underlying group structure, the nature and recoverability of intercompany balances, and confirmation of the business plan to generate positive cash flows and improve equity.

2. Financial Strength: The balance sheet shows total current assets of £14,286, primarily cash (£13,286), with debtors at £1,000. Current liabilities are £1,200, yielding positive net current assets of £13,086. However, there is a substantial creditor balance after one year of £13,500, resulting in net liabilities of £414 and negative shareholders’ funds of £1,414. The company’s capital structure consists of only £1,000 called-up share capital, reflecting its start-up status. The presence of significant long-term creditors suggests reliance on external or intercompany funding that needs further assessment for sustainability and repayment terms.

3. Cash Flow Assessment: The company holds a small cash balance (£13,286) sufficient to cover short-term liabilities (£1,200), indicating adequate liquidity in the immediate term. However, given the company’s limited operational activity (one employee, minimal debtors), cash inflows appear dependent on financing activities or group transactions. The current working capital position is positive, but the overall liquidity assessment is constrained by the company’s negative net assets and reliance on related party loans. Future cash flow projections and the timing of creditor repayments should be reviewed to ensure continued liquidity.

4. Monitoring Points:

• Monitor the company’s ability to improve equity through retained earnings or capital injections.
• Review the status and repayment terms of related party loans and long-term creditors.
• Track cash flow generation from operating or investment activities to reduce reliance on external funding.
• Watch for timely filing of accounts and confirmation statements to avoid compliance risks.
• Assess any changes in ownership or control that could affect the company’s risk profile.