A&A LETTINGS AND MANAGEMENT SERVICES LTD

Executive Summary

A&A Lettings and Management Services Ltd, incorporated in 2023, currently faces high risk primarily due to substantial net current liabilities and negative shareholders’ funds despite owning investment property. The company’s limited operational history and minimal cash reserves raise liquidity and solvency concerns. However, compliance with filing requirements and ownership of tangible assets provide some positive context; further detailed due diligence on asset liquidity and liability structure is advisable.

A&A LETTINGS AND MANAGEMENT SERVICES LTD - Analysis Report

Company Number: 14817542

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns. Despite holding investment property valued at approximately £298k, the company’s net liabilities stand at £3,479 with current liabilities exceeding current assets by £108,787. This negative working capital position, combined with minimal cash reserves (£1,961), indicates a high risk of inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has a net current liability position of £108,787, indicating that current liabilities far exceed current assets, which is a serious liquidity risk.
• Negative Shareholders’ Funds: The company’s net liabilities and shareholders’ deficit, though small in absolute value, reflect accumulated losses and insufficient equity buffer.
• Early Stage with Limited Operational History: Incorporated in April 2023 and with no employees besides the director, the company’s business sustainability and operational stability remain unproven.

3. Positive Indicators:

• Investment Property Holding: The company owns investment property valued at £298,297, providing a tangible asset base that could potentially be leveraged or sold if needed.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, suggesting good governance and regulatory compliance to date.
• Single Director with Full Control: Miss Asia Arif holds 75-100% of shares and voting rights, which may facilitate streamlined decision-making.

4. Due Diligence Notes:

• Verify the marketability and liquidity of the investment property to assess its usefulness in mitigating liquidity risks.
• Investigate the nature and maturity profile of the £192k liabilities due after more than one year to understand long-term solvency.
• Review business plans or cash flow forecasts to evaluate going concern assumptions and operational viability.
• Confirm absence of any director disqualifications or adverse conduct records for Miss Asia Arif.
• Examine any contingent liabilities or off-balance-sheet obligations not disclosed in the abridged accounts.