Company Number: 13181066

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: MEDIUM
   While NVAPPS LTD is currently active and compliant with filing deadlines, its financial profile reveals liquidity challenges and a history of negative net assets, which raises moderate solvency concerns for investors.

2. Key Concerns:

• Negative Net Current Assets: The company shows a consistent pattern of net current liabilities, with a worsening position from £-1,940 in 2024 to £-6,270 in 2025, indicating potential short-term liquidity stress.
• Historical Negative Net Assets: In 2022, net assets were negative (£-2,555), suggesting previous solvency issues, although there has been improvement since.
• Small Scale and Limited Capital: As a micro-entity with minimal share capital (£100) and a small employee base (2 employees), the company may have limited operational resilience and financial flexibility.

3. Positive Indicators:

• Improved Net Assets: The net assets increased from a negative £-2,555 in 2022 to £7,220 in 2025, reflecting some recovery or capital injection.
• Compliance and Governance: The company is up to date with its accounts and confirmation statement filings and has no overdue returns, indicating sound regulatory compliance.
• Consistent Leadership: The sole director and controlling shareholder has been in place since incorporation, which may provide stability in management.

4. Due Diligence Notes:

• Investigate the nature and timing of improvements in net assets—whether from retained earnings, capital injections, or asset revaluations.
• Review detailed cash flow statements or bank reconciliations (not provided) to assess actual liquidity and working capital management.
• Understand the company's revenue streams and profitability trends to evaluate operational sustainability beyond balance sheet metrics.
• Assess any contingent liabilities or off-balance sheet obligations that could affect solvency.
• Verify the absence of any director disqualifications or regulatory issues beyond public filings.