Avalon Telematics Ltd
No rating2. Executive Summary
Assessment for FY2026
| Item | Value |
|---|---|
| Risk score | 0.85 |
| Rating | withheld: too little of the analysis could be computed |
| Score quality | limited |
| Extraction coverage | 58.0% |
| Analysis coverage | 35.1% |
| Confidence | low |
| Reporting quality | V |
Key findings
The closing year is the pivot. Revenue was flat while the operating result turned deeply negative and the accumulated deficit multiplied, and the filings give the cause: an impairment of the acquired North America business after the loss of a significant customer contract . The warning had been on the page for years. Net assets exceeded market capitalisation at every balance date since 2021, which the filings themselves name an indicator of impairment , and the prior year's audit report said the headroom might be lower than management had calculated . The reporting record is the second strand: a self-identified currency error running back to the acquisition year, with every affected prior-period line restated , and contract costs moved between operating and investing cash flows with the comparatives re-presented twice . Against that, the estimates that set the result run at the edge of the population: the allowance held against receivables sits at the peer ceiling in every computed year Allowance against receivables sits at the peer ceiling in every computed year, and the write-down itself reads as carrying value coming off rather than trading collapsing Fiscal 2026 write-down empties equity and multiplies the accumulated deficit.
Most significant observations
| Observation | Year | Document | Page |
|---|---|---|---|
| North America carrying value survives only on assumptions management concedes could move | 2026 | avalon-annual-report-2026 | 2 |
| Banking facilities amended and extended against a working capital deficit | 2026 | avalon-annual-report-2026 | 4 |
| Digit conformity is unremarkable in every year and best at the close | 2026 | — | — Digit conformity is unremarkable in every year and best at the close |
Verdict
The withheld rating is itself a finding. Coverage sits below the rating floor in all seven years, score quality never rises above limited, and half the analysis areas returned insufficient evidence; every reading that tests manipulation directly computed in no year, so the study's own question is untested rather than answered. What did compute reads benign: digit conformity is unremarkable, the one accrual-quality reading sits on the benign side of the population, and operating cash is positive every year. The supportable reading is an impairment following a lost customer at a leveraged small company, with the reporting record warranting further work.