A M P WEALTH MANAGEMENT LTD

Executive Summary

A M P Wealth Management Ltd exhibits a very weak financial position with minimal net assets and limited operational activity. The company’s capacity to service debt is highly constrained, and no meaningful financial cushion exists. Credit facilities are not recommended until there is clear evidence of improved financial stability and operational viability.

A M P WEALTH MANAGEMENT LTD - Analysis Report

Company Number: 13827578

Analysis Date: 2025-07-29 19:52 UTC

1. Credit Opinion: DECLINE
   A M P Wealth Management Ltd, incorporated in 2022, is a micro-entity with minimal financial scale and limited operational history. The latest financials show a drastic reduction in net current assets from £1,993 in early 2023 to a marginal £25 by January 2024. This suggests significant liquidity tightening and potential cash flow stress. The company has no employees currently, indicating very low operational activity. The controlling director’s background as an art dealer rather than financial management may also imply limited sector-specific experience. Given the minimal equity base and near break-even working capital, the risk of default or inability to meet debt obligations is high. Therefore, approval for credit facilities is not recommended at this time.

2. Financial Strength:
   The balance sheet reveals very limited financial strength. Total current assets are only £4,878 against current liabilities of £4,853, leaving net current assets at a negligible £25. Shareholders’ funds have diminished substantially from £1,993 the previous year, indicating erosion of equity. No fixed assets are reported, and the company does not employ staff, which further signals minimal operational scale. The financial position is fragile, with virtually no buffer to absorb shocks or support expansion.

3. Cash Flow Assessment:
   The near parity between current assets and liabilities implies minimal working capital. Cash reserves appear very limited, increasing the risk that short-term liabilities may not be met promptly. The absence of employees and lack of detailed profit and loss information may indicate low or no revenue generation, calling into question the sustainability of cash inflows. Overall liquidity is weak, and there is no clear evidence of positive cash flow generation.

4. Monitoring Points:

• Monitor net current assets and shareholders’ funds for any further deterioration.
• Watch for any increase in operational scale, including hiring or revenue growth.
• Assess director involvement and sector expertise improvements.
• Review upcoming annual accounts and confirmation statements to ensure continued compliance and transparency.
• Track any changes in liabilities that might increase pressure on liquidity.