PERFORMANCE VANS LIMITED

Executive Summary

Performance Vans Limited, a young private limited company in the motor vehicle sales sector, has shown a marked improvement in net assets and reduction in liabilities over its first two years. However, liquidity concerns due to declining cash reserves and concentrated ownership warrant careful ongoing monitoring. Compliance and operational stability appear sound, but further cash flow analysis and governance review are recommended for a fuller risk assessment.

PERFORMANCE VANS LIMITED - Analysis Report

Company Number: 13879845

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: MEDIUM
   Performance Vans Limited shows a moderate financial position for a recently incorporated company. While net assets have more than doubled from £22.6k in 2023 to £50.8k in 2024, the company is still small and relatively new, with limited fixed assets and modest cash reserves. The significant reduction in current liabilities from £57.6k to £13.3k is positive but warrants monitoring for sustainability.

2. Key Concerns:

• Liquidity Risk: Cash on hand decreased from £18.8k to £8.6k, which could pressure short-term liquidity despite healthy net current assets. The company’s trade debtors have also fallen sharply, which could indicate collection or revenue issues.
• Limited Asset Base: Fixed assets are minimal (£3.4k), suggesting limited investment in operational capacity or reliance on third-party resources. This may constrain growth or operational flexibility.
• Concentration of Control: The sole director and 100% shareholder (Mr. Robert Atterbury) controls all voting rights and director appointments, which could raise corporate governance concerns for investors seeking diversified oversight.

3. Positive Indicators:

• Improved Financial Health: Net assets and shareholders’ funds more than doubled year-on-year, indicating retained earnings or capital injections and improved solvency.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating compliance with statutory obligations and reducing regulatory risk.
• Stable Stock Levels: Inventory remains consistent around £51.5k, suggesting stable operations and no significant stock write-downs or obsolescence reported.

4. Due Diligence Notes:

• Review cash flow statements and bank reconciliations to assess liquidity trends beyond balance sheet snapshots.
• Investigate the reasons behind the large reduction in current liabilities and trade debtors between 2023 and 2024 to understand operational or payment cycle changes.
• Evaluate the impact of the director’s sole control on decision-making and potential succession or risk mitigation plans.
• Confirm the nature of deferred tax liability (£649) and whether it reflects timing differences with potential future cash impact.
• Assess revenue trends and customer concentration given limited debtor balance and industry exposure to motor vehicle sales.