ACGH DEVELOPMENTS LIMITED

Executive Summary

ACGH Developments Limited presents weak financial metrics with negative equity and ongoing working capital deficits. The company’s liquidity is constrained, relying heavily on illiquid stock and external funding support from its parent company. Given current financials, credit facilities cannot be safely extended without significant improvement in cash flows or capital structure.

ACGH DEVELOPMENTS LIMITED - Analysis Report

Company Number: 14114530

Analysis Date: 2025-07-20 14:40 UTC

1. Credit Opinion:
   DECLINE. The company exhibits persistent negative net current assets and shareholders' funds, indicating an ongoing working capital deficiency and negative equity. The absence of cash reserves (cash at £1) and reliance on stock (properties under development) without evidence of sales or cash inflows raises significant liquidity concerns. Despite assurances from the parent company for funding support, the company's financial position is weak, and the risk of non-repayment or default on credit facilities is high without substantial improvement in liquidity or equity.

2. Financial Strength:
   ACGH Developments Limited shows a deteriorating balance sheet with net current liabilities increasing from (£5,997) in 2023 to (£19,168) in 2024 and shareholder funds declining proportionally to (£19,169). Total assets less current liabilities are negative, reflecting that current liabilities exceed current assets. The company holds stock valued at £142,376 but minimal cash, indicating funds are tied up in development projects. The company is a micro entity but is not generating positive retained earnings or equity, which points to weak financial resilience.

3. Cash Flow Assessment:
   The company’s liquidity position is poor, with cash holdings at a nominal £1 and current liabilities exceeding current assets. Negative net current assets highlight a working capital deficit, which suggests difficulties meeting short-term obligations from operating cash flows. The stock being development properties is illiquid and may not convert quickly to cash. The company depends on the parent company for additional funding support, which currently masks immediate liquidity risks but does not eliminate credit risk.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds through project completions and sales.
• Realisation of stock into cash and reduction of current liabilities.
• Parent company’s continued financial support and any changes in that arrangement.
• Timely filing of accounts and confirmation statements to monitor compliance and financial updates.
• Any increase in cash reserves or positive operational cash flows that demonstrate self-sufficiency.