A AND K EVENTS STYLING LIMITED

Executive Summary

A AND K EVENTS STYLING LIMITED demonstrates significant solvency and liquidity risks with increasing net liabilities and minimal current assets relative to current liabilities. The lack of operational scale and employees further undermines business sustainability. While statutory compliance is maintained, close scrutiny of financial structure, cash flows, and management plans is recommended to assess viability and investment risk.

A AND K EVENTS STYLING LIMITED - Analysis Report

Company Number: 13493881

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: HIGH
   The company exhibits a high-risk profile primarily due to persistent and increasing net liabilities, negative shareholders' funds, and the absence of employees or operational scale, indicating significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net liabilities have worsened from approximately £11,482 in 2021 to £20,563 in 2024, signaling ongoing financial distress and erosion of capital.
• Liquidity Mismatch: Current liabilities (~£22,833) vastly exceed current assets (£436) as of 2024, indicating a poor working capital position and potential difficulties meeting short-term obligations.
• Operational Inactivity: The company reports zero employees and minimal fixed assets, suggesting limited or no active business operations, raising sustainability questions.

3. Positive Indicators:

• Compliance with Filing: The company has no overdue accounts or confirmation statements, showing adherence to statutory filing requirements.
• Stable Legal Status: The company remains active with no signs of insolvency proceedings such as liquidation or administration.
• Recent Director Appointment: Appointment of a new director in September 2024 may indicate attempts to improve governance or strategic direction.

4. Due Diligence Notes:

• Examine Underlying Causes of Losses: Investigate the nature of liabilities and reasons for increasing net liabilities to understand if losses are operational or due to financing arrangements.
• Cash Flow and Debt Servicing: Assess cash flow statements and creditor arrangements to evaluate the company's ability to meet short-term debts given poor liquidity.
• Business Model and Revenue Streams: Clarify current business activities, revenue generation status, and future prospects in the second-hand goods retail sector, especially given the micro-entity scale and no employees.
• Director Background and Plans: Review the background and intentions of the newly appointed director and any strategic plans to restore financial health.
• Potential Related Party Transactions: Given the significant control by a single individual and previous director, explore any related party transactions or financial support arrangements.