PRIVEV LTD

Executive Summary

Privev Ltd is a micro-entity in early growth phase with improving net asset position but significant negative working capital and liquidity constraints primarily due to director loans. Credit approval is conditional, recommending careful lending terms and close cash flow monitoring. The company’s financial resilience depends heavily on ongoing director support and operational scaling to strengthen cash flows.

PRIVEV LTD - Analysis Report

Company Number: 13743334

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Privev Ltd shows some improvement in net asset position from a negative £355 to a positive £7,869, indicating early-stage recovery and growth potential. However, the company currently reports significant net current liabilities of £140,802, mainly driven by director loans (£34,679) and other short-term obligations, which poses liquidity risk. Given its micro-entity status and recent incorporation (2021), the company is in a nascent phase with limited trading history and working capital constraints. Approval is possible if lending is structured conservatively, closely monitored, and potentially supported by director guarantees or additional security.

2. Financial Strength:
   The balance sheet shows fixed assets of £149,151, which could provide some collateral value. Total assets less current liabilities improved to £8,349 from a previous deficit. Shareholders’ funds have turned positive (£7,869), reflecting retained earnings or capital injections. Despite this, the company’s working capital remains negative, suggesting reliance on short-term funding, mainly from directors. The absence of external debt and interest-bearing liabilities reduces financial burden but also indicates limited external funding capacity.

3. Cash Flow Assessment:
   With current assets at £15,962 against current liabilities of £156,764, Privev Ltd has negative net current assets of £140,802, indicating strained liquidity and potential cash flow challenges in meeting short-term obligations. The director loan is interest-free and repayable on demand, which offers some flexibility but also risk if directors withdraw support. The company employs only one person (the director), minimizing payroll outflows but also limiting operational scale and cash inflows. Cash flow management will be critical, and the company should improve debtor collections and/or increase liquidity buffers.

4. Monitoring Points:

• Track improvement in net current assets and liquidity ratios to ensure the company can meet short-term liabilities.
• Monitor director advances and any changes in their financial support or repayment terms.
• Review turnover and profitability trends once available to assess operational performance and ability to generate internal cash flow.
• Watch for timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Evaluate any changes in fixed asset valuations or disposals that could affect collateral value.