ADVANCED INNOVATIVE MANUFACTURING LIMITED

Executive Summary

Advanced Innovative Manufacturing Limited shows symptoms of financial distress with negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. Although currently active and compliant, urgent measures to improve cash flow, reduce liabilities, and restore operations are critical to avoid further deterioration. Prompt financial management and restructuring could stabilize the company’s condition.

ADVANCED INNOVATIVE MANUFACTURING LIMITED - Analysis Report

Company Number: 12643571

Analysis Date: 2025-07-20 18:25 UTC

Financial Health Assessment: ADVANCED INNOVATIVE MANUFACTURING LIMITED

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1. Financial Health Score: D

Explanation:
This company shows clear symptoms of financial distress. Its vital signs reveal a negative net current asset position and negative shareholders’ funds, indicating the company is operating with a working capital deficiency and has an accumulated deficit in equity. Although it remains active and has compliance filings up to date, the financial position is precarious and requires prompt attention.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2023 Figures (£)	Interpretation
Current Assets (Debtors)	100	Very low liquid assets; minimal cash or receivables.
Current Liabilities	12,431	Significant short-term obligations.
Net Current Assets	-12,331	Negative working capital; unable to cover short-term debts with current assets.
Shareholders' Funds	-12,331	Negative equity indicates accumulated losses; company is ‘underwater’.
Share Capital	100	Nominal paid-up capital; minimal cushion for losses.

Interpretation:
The “vital signs” show the company’s financial pulse is weak. The negative net current assets are like low oxygen levels in a patient, signaling the company lacks sufficient short-term resources to meet immediate obligations. Negative shareholders’ funds illustrate a deficit in the company’s net worth, akin to a patient with a chronic condition that has deteriorated over time.

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3. Diagnosis (What the Numbers Reveal)

• Working Capital Deficiency: The company’s current liabilities of £12,431 far exceed current assets of £100, resulting in negative net current assets of -£12,331. This means the company may face liquidity issues, struggling to pay suppliers, creditors, or other short-term obligations on time.

• Negative Equity: Shareholders’ funds are negative at -£12,431, suggesting accumulated losses or financial strain within the company. This is a critical symptom indicating financial distress, signaling that the company’s liabilities exceed its assets.

• Minimal Operational Activity: Debtors remain constant at £100 compared to previous years, while liabilities have dramatically increased from zero to over £12,000 in one year. This could be symptomatic of borrowing or delayed payments within the group (interest-free loans from group undertakings), which may temporarily mask cash flow issues but increase financial risk.

• No Employees Reported: The company reported zero employees during 2023, indicating limited or no active operations which may impact revenue generation and sustainability.

• Going Concern Statement vs Reality: Directors state the company is a going concern, but the financial data shows symptoms of distress that warrant monitoring. The company may be relying on group funding (creditors owed to group undertakings) to stay afloat.

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4. Recommendations (Prescriptions for Financial Wellness)

• Improve Liquidity: Seek to increase current assets (e.g., cash, receivables) and/or reduce current liabilities. This could be achieved by accelerating debtor collection, negotiating extended payment terms with suppliers, or injecting additional equity.

• Review Group Loan Arrangements: £11,831 owed to group undertakings is a significant liability. Formalise repayment plans or consider converting some debt into equity to strengthen the balance sheet.

• Operational Review & Revenue Generation: Investigate why there are no employees and minimal operational activity. Business needs a treatment plan to revive trading activities, generate cash flows, and return to profitability.

• Cost Control: Reduce overheads and non-essential expenditures to conserve cash. If necessary, restructure operations to align costs with revenue potential.

• Financial Monitoring: Implement regular financial health checks focusing on cash flow forecasting and working capital management to detect early signs of distress.

• Seek Professional Advice: Consider consulting turnaround specialists or financial advisors to assist with restructuring and recovery plans.

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Medical Analogy Summary

The company’s financial health resembles a patient with low blood pressure and oxygen deficiency—signs of distress requiring urgent treatment. Without intervention, the risk of insolvency increases. However, with targeted actions to improve liquidity and operational efficiency, recovery is possible.

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