NVA WIFI ,FIBRE OPTIC AND NETWORK SOLUTIONS LTD

Executive Summary

NVA WIFI, FIBRE OPTIC AND NETWORK SOLUTIONS LTD is a micro-entity showing early-stage financial recovery with improved net assets and no compliance issues. However, reliance on an unsecured director’s loan and significant provisions for liabilities introduce moderate solvency and liquidity risks. Further due diligence on contingent liabilities and cash flow stability is recommended to fully assess operational sustainability.

NVA WIFI ,FIBRE OPTIC AND NETWORK SOLUTIONS LTD - Analysis Report

Company Number: 13880902

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: MEDIUM
   The company shows a modest improvement in net assets and working capital in the latest financial year, suggesting some recovery from previous years’ financial strain. However, significant liabilities relative to equity, a director’s loan, and negative net current assets in prior years indicate a moderate solvency and liquidity risk at this early stage of operations.

2. Key Concerns:

• Director’s Loan Exposure: The company has an unsecured, interest-free director’s loan of £29,176, repayable on demand, indicating reliance on insider funding and potential liquidity risk if repayment is demanded unexpectedly.
• Working Capital Volatility: Prior year showed negative net current assets (£-22,266) and current liabilities exceeding current assets, raising concerns about short-term liquidity management. Although improved in the latest year, the balance remains tight.
• Provisions for Liabilities: Provisions increased significantly to £21,248 in the latest year, which could signal contingent liabilities or risks that may affect future cash flows.

3. Positive Indicators:

• Improved Net Assets: Shareholders’ funds increased from £1 to £7,707, reflecting some accumulation of equity or retained earnings.
• No Overdue Filings or Compliance Issues: The company is active, with up-to-date accounts and confirmation statements, indicating sound regulatory compliance.
• Single Director and PSC: Clear control and responsibility by one individual, which can simplify governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the provisions for liabilities to understand potential future obligations.
• Assess the stability and repayment terms of the director’s loan, including any plans for formalizing or refinancing this exposure.
• Review cash flow statements, if available, to confirm liquidity trends beyond the balance sheet snapshot.
• Confirm whether the company has any contingent liabilities or off-balance-sheet commitments not reflected in the accounts.
• Evaluate the business model and contracts in the wired telecommunications sector for sustainability and growth prospects given the micro-entity status.