ADVANCED MANUFACTURING SOLUTIONS LTD

Executive Summary

Advanced Manufacturing Solutions Ltd exhibits considerable liquidity risk with a severe working capital deficit and declining net assets in its second year of operation. Despite statutory compliance and clear ownership, the absence of employees and cash flow stress pose significant concerns for operational sustainability. Further investigation into creditor composition and business activity is recommended before considering investment exposure.

ADVANCED MANUFACTURING SOLUTIONS LTD - Analysis Report

Company Number: 14014501

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity strain with current liabilities far exceeding current assets and negligible cash reserves in the latest financial year. The falling net assets and lack of working capital indicate elevated risk in meeting short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Current assets dropped from £4,147 in 2023 to £1 in 2024, while current liabilities increased sharply from £1,029 to £3,963, resulting in a negative working capital of £3,962. The company holds only £1 in cash, which is insufficient to cover immediate liabilities.
• Deteriorating Financial Position: Net assets decreased from £3,118 in 2023 to £2,597 in 2024, a decline of ~17%, signaling erosion of equity base. The company also shows no debtors as of 2024, whereas it had £4,146 in 2023, indicating either write-offs or loss of receivables.
• No Employees and Limited Operational Data: The report states zero employees including directors, which raises questions about operational activity and sustainability. Absence of staff may imply the company is not generating revenue or is minimally operational.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time with no overdue penalties, indicating compliance with statutory reporting requirements.
• Ownership and Control Transparency: Single director and 100% shareholder control by Karl Anthony Roberts simplifies governance and reduces risk of internal conflicts.
• Exemption from Audit: The company qualifies for audit exemption under the small companies regime, consistent with its size, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature of the sharp increase in current liabilities and the absence of debtors in 2024. Seek explanations for creditor composition and potential disputes or deferred payments.
• Clarify the company’s operational status given no employees are reported. Confirm if the business is trading, dormant, or effectively inactive despite "active" status.
• Assess the director’s plans or financial support arrangements to address liquidity shortfall and restore working capital. Review any related party transactions or director loans not fully disclosed.
• Review turnover or revenue figures (not provided) to understand cash flow dynamics and business model viability.