A2MA LIMITED

Executive Summary

A2MA Limited exhibits significant financial distress characterized by zero current assets and a history of negative net assets, indicating poor liquidity and fragile financial health. Though compliant with statutory filings, the company’s lack of active operations and financial buffers poses risks to its ongoing viability. Immediate measures to improve cash flow and address accumulated losses are recommended to avoid insolvency.

A2MA LIMITED - Analysis Report

Company Number: SC664859

Analysis Date: 2025-07-20 16:19 UTC

Financial Health Assessment: A2MA LIMITED as of 30 June 2024

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1. Financial Health Score:

Grade: D
Explanation: The company shows signs of financial distress with net liabilities and no current assets. While it remains active, the balance sheet reveals a fragile position with zero working capital and a history of negative net assets. The absence of current assets in the latest year is particularly concerning as it implies no liquid resources are available to meet short-term obligations.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Current Assets	£0	No cash, receivables, or stock to cover short-term needs—symptom of liquidity issues.
Current Liabilities	£0	No immediate payables reported this year, but prior years show obligations.
Net Current Assets (Working Capital)	£0	No buffer to absorb unexpected expenses or delays in cash inflows; unhealthy cash flow condition.
Net Assets	£0	No positive equity value; company is at break-even on asset-liability basis but previous years show negative equity.
Share Capital	£1.00	Minimal equity investment, typical for small companies.
Historical Net Liabilities	£-46 to £-100 (prior years)	Past negative equity suggests accumulated losses and financial strain.
Turnover / Profit & Loss Data	Not disclosed in detail, but no employees and no turnover reported; likely minimal trading activity.

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3. Diagnosis:

• Liquidity Symptoms: The company currently holds no liquid or current assets, indicating that it may struggle to generate cash or meet any short-term financial obligations. This is akin to a patient with "dehydration"—no fluid reserves to maintain vital functions.

• Balance Sheet Weakness: The net asset position has improved from prior years’ negative figures but remains at zero, showing no financial "reserves" or buffer. The company’s accumulated losses have largely eroded shareholder funds.

• Operational Activity: Absence of employees and minimal financial activity signals either a dormant or very low-activity business, possibly a shell or holding entity without active trading.

• Risk of Financial Distress: Although not in formal liquidation or administration, the financial "vital signs" suggest vulnerability. Lack of cash and negative past equity are symptoms that, if unaddressed, could lead to insolvency.

• Compliance and Reporting: The company is compliant with filing requirements and has opted for exemption from audit, typical for small entities but limiting external assurance on financial health.

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4. Recommendations:

• Improve Liquidity: Seek to increase current assets, particularly cash or receivables, to establish a healthy cash flow buffer. This could involve accelerating customer payments or injecting fresh equity.

• Financial Restructuring: Address accumulated losses through capital injection or restructuring liabilities. Consider whether the business model is sustainable given the lack of assets and operational activity.

• Operational Review: Evaluate the business purpose and strategy. If the company is inactive, consider formal dormant status or closure to reduce ongoing costs and risks.

• Financial Monitoring: Implement regular financial reviews and forecasting to detect early signs of distress. Use cash flow projections like vital signs monitoring.

• Engage Professional Advice: Consider consulting a financial adviser or insolvency practitioner to explore options for recovery or orderly wind-down if trading is not viable.

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Medical Analogy Summary:

A2MA Limited’s financial health resembles a patient who has depleted fluid reserves and is showing signs of chronic weakness (negative equity). The absence of current assets is like a lack of circulating blood flow—critical for survival. Without intervention to restore liquidity and capital, the company risks financial collapse.

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