NVAPPS LTD

Executive Summary

NVAPPS LTD is a micro-entity IT consultancy with a track record of liquidity challenges and a brief period of negative net assets, now showing signs of balance sheet improvement. The company maintains good regulatory compliance but requires further scrutiny of cash flows and operational viability to fully assess investment risk. Overall, the risk profile is medium due to financial constraints balanced against stable governance and compliance.

NVAPPS LTD - Analysis Report

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.