ACBM LIMITED

Executive Summary

ACBM LIMITED is currently exhibiting critical financial distress characterized by extremely low liquidity and negative net assets, jeopardizing its solvency. Immediate capital infusion and stringent cost controls are essential to stabilize the company’s financial health. Without urgent action, the risk of insolvency increases significantly.

ACBM LIMITED - Analysis Report

Company Number: NI689620

Analysis Date: 2025-07-29 18:25 UTC

Financial Health Assessment: ACBM LIMITED (NI689620)
Assessment Date: Financial year ended 31 July 2024

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1. Financial Health Score:

Grade: D
Explanation:
The company shows persistent net liabilities and very low current assets relative to current liabilities, indicating financial distress symptoms. While the company is active and filings are up-to-date, the balance sheet reveals a worrying liquidity position and net asset deficit. This grade reflects a weak financial condition with significant risks to solvency.

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2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Fixed Assets	4,677	Very low fixed asset base, indicating limited investment in long-term productive resources.
Current Assets	2	Extremely low liquid assets; nearly no cash or receivables to meet short-term obligations.
Current Liabilities	32,369	High short-term debts relative to assets, a critical warning sign of liquidity trouble.
Net Current Assets	-32,367	Negative working capital; company cannot cover immediate debts with available current assets.
Net Assets (Shareholders Funds)	-27,689	Negative equity indicates liabilities exceed assets, often a sign of insolvency risk.
Employee Count	1	Very small operational scale; business may be highly dependent on a single individual.

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3. Diagnosis:

The "vital signs" reveal clear symptoms of financial distress. The company’s current assets are almost negligible compared to its current liabilities, suggesting a critical shortage of liquid resources to settle debts as they fall due. The persistent negative net assets over consecutive years reflect accumulated losses or undercapitalization.

This condition resembles a patient with a "weak pulse and low blood pressure"—the business is struggling to maintain financial stability and may face solvency challenges if immediate intervention is not made.

The company operates in specialized cleaning services and vehicle-related activities, sectors that often require working capital for operations and inventory. The extremely low current assets could indicate stalled operations or revenue generation issues.

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4. Recommendations:

a. Improve Liquidity:

• Inject additional capital or secure short-term financing to restore working capital health.
• Tighten credit control and accelerate receivables collection to boost current assets.

b. Cost Management:

• Review and reduce fixed and variable costs to conserve cash flow.
• Avoid further liabilities that may exacerbate liquidity stress.

c. Operational Review:

• Assess business model viability given the small scale and negative equity position.
• Explore potential restructuring or merging with financially stronger entities.

d. Financial Monitoring:

• Implement regular cash flow forecasting and financial health checks to detect early signs of distress.
• Engage financial advisory support to navigate turnaround strategies.

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