Company Number: 13639062

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: MEDIUM

Justification: EMV INTERNATIONAL LTD shows positive net current assets and increasing net assets over the last financial year, indicating solvency. However, significant fluctuations in debtor and creditor balances between 2023 and 2024 raise questions about cash flow consistency and working capital management. The company is relatively young (incorporated 2021) and small in scale, which adds some operational risk due to limited track record.

2. Key Concerns:

• Large reduction in trade debtors from £69,948 in 2023 to £0 in 2024, which may indicate collection issues or changes in revenue recognition; this warrants investigation to ensure revenue stability.
• Significant decrease in current liabilities from £72,083 in 2023 to £15,591 in 2024 could reflect changes in supplier credit terms or payment patterns that may impact liquidity.
• Director change mid-2025 with the resignation of original director Massimo Provenza and appointment of Marco Pasetto; governance and continuity effects should be reviewed, especially given that Massimo Provenza remains a person of significant control per the latest filings.

3. Positive Indicators:

• Consistent positive net current assets over multiple years, with an improving balance from £35,815 in 2023 to £51,228 in 2024, suggesting sound short-term financial health.
• Cash balance increased significantly from £37,861 in 2023 to £63,423 in 2024, enhancing liquidity.
• No overdue filings or confirmation statements, indicating compliance with Companies House regulatory requirements.
• Shareholders’ funds have grown steadily, reflecting accumulated retained earnings and a potentially stable equity base.

4. Due Diligence Notes:

• Clarify the nature of the dramatic reduction in trade debtors in 2024: whether this is due to changes in business operations, write-offs, or improved collections.
• Review the reasons behind the sharp decline in current liabilities and whether this affects supplier relationships or working capital cycles.
• Assess implications of director transition in 2025 on company strategy and governance.
• Investigate the relationship and impact of the significant control held by Mr. Massimo Provenza and Emma Villas S.P.A., and whether any related party transactions exist.
• Confirm the accuracy and completeness of revenue recognition policies, given the company’s SIC code (travel agency activities) which can be sensitive to market fluctuations.