A & G HOLDINGS (MIDLANDS) LIMITED

Executive Summary

A & G Holdings (Midlands) Limited is a small private company with a stable but modest equity base supported by investment property assets. The company experiences ongoing working capital deficits and limited cash reserves, indicating potential short-term liquidity risk. Credit approval is conditional on close monitoring of liquidity and debt servicing capacity.

A & G HOLDINGS (MIDLANDS) LIMITED - Analysis Report

Company Number: 12461720

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   A & G Holdings (Midlands) Limited shows stable net assets and equity over recent years, supported by investment property valued at £170,000. However, the company exhibits a persistent working capital deficit (net current liabilities of £7,166 in 2024), indicating potential short-term liquidity constraints. The current liabilities are significant relative to cash at hand (£1,790). The company’s ability to service short-term debts depends on cash flow from operations or refinancing. Given its small size and limited cash resources, credit extension should be conditional on monitoring liquidity closely and possibly securing additional collateral or guarantees.

2. Financial Strength:
   The balance sheet reflects net assets of £15,787 in 2024, slightly up from £15,357 in 2023, indicating a stable equity base. The primary asset is an investment property held at £170,000 fair value. Total liabilities consist mainly of long-term bank loans (£99,432) and other creditors (£44,000) falling due after one year, with current liabilities at £8,956. The company has maintained its investment property value without impairment, but the high level of long-term debt relative to equity (gearing) suggests moderate leverage risk. The minimal share capital (£2) and small retained earnings also limit the buffer for absorbing losses.

3. Cash Flow Assessment:
   The company holds minimal cash balances (~£1,790) relative to current liabilities (~£8,956), resulting in negative net current assets and indicating a tight liquidity position. There is no detailed income statement data, but the recurring working capital deficit implies cash flow challenges in meeting short-term obligations without external support or asset disposals. The presence of deferred tax provisions (£3,615) is noted but unlikely to impact liquidity directly. Monitoring receivables and timely collection will be critical to maintaining liquidity.

4. Monitoring Points:

• Liquidity: Cash levels relative to current liabilities and any changes in working capital.
• Debt servicing: Timely repayment of bank loans and other creditors, especially amounts due within one year.
• Property valuation: Any significant changes in fair value of investment property that may affect collateral value.
• Profitability trends: To assess operational cash generation (not available currently but important when filed).
• Director conduct and company filings: Confirm ongoing compliance and good governance.