MVS AUDIO VISUAL HOLDINGS LIMITED

Executive Summary

MVS Audio Visual Holdings Limited is a newly formed micro enterprise with significant fixed assets but high leverage and negative working capital. While management appears stable, the company’s current financial position and limited trading history warrant a cautious, conditional credit approval pending demonstration of cash flow generation and improved liquidity. Close monitoring of financial performance and working capital will be critical to managing credit risk.

MVS AUDIO VISUAL HOLDINGS LIMITED - Analysis Report

Company Number: 15155679

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

1. Credit Opinion: CONDITIONAL APPROVAL
   MVS Audio Visual Holdings Limited is a newly incorporated micro-entity with limited trading history and modest equity. Its balance sheet shows significant fixed assets (£1.52M) but also substantial long-term liabilities (£849k) and net current liabilities (£639k), resulting in minimal net assets (£35.7k). The company has one employee and is operating in wholesale electronic equipment, a sector subject to market fluctuations. Given the recent start (incorporated Sep 2023) and limited financial data, credit approval should be conditional on updated trading performance, cash flow evidence, and management of liabilities. The presence of experienced directors controlling the majority shareholding is somewhat reassuring, but the high leverage and negative working capital pose risks to repayment ability.

2. Financial Strength:
   The balance sheet indicates a highly leveraged capital structure with fixed assets financed largely by creditors. Net current liabilities of £639k suggest working capital constraints and potential liquidity pressure. Shareholders funds of just £35.7k reflect very low equity buffer. The asset base is concentrated in fixed assets, potentially illiquid. Without profitability or cash flow data, the financial strength is weak at this stage, typical for a start-up micro company investing in capital equipment but yet to generate substantial earnings or build reserves.

3. Cash Flow Assessment:
   The company’s net current liabilities position indicates negative working capital, which may lead to cash flow difficulties in meeting short-term obligations. No profit and loss data is available, and the director chose not to file a P&L statement, limiting insight into operational cash generation. Careful monitoring of receivables, payables, and cash balances will be essential. The single employee and small scale reduce overheads, but the company will need to demonstrate ongoing cash inflows to service debt and operational costs.

4. Monitoring Points:

• Quarterly management accounts to assess trading performance and cash flow trends.
• Working capital changes, particularly debtor and creditor days, to ensure liquidity is improving.
• Debt servicing capacity and any new borrowings or creditor arrangements.
• Director and shareholder stability and any changes in control or financial support.
• Filing of next annual accounts and confirmation statements on time.