AGI ECOMMERCE LTD

Executive Summary

AGI ECOMMERCE LTD currently exhibits a weak financial profile with persistent net liabilities and poor liquidity, limiting its ability to service debt. The company’s micro-entity status and minimal operational scale increase credit risk. Credit exposure is not recommended without significant financial restructuring or improved cash flow generation.

AGI ECOMMERCE LTD - Analysis Report

Company Number: 12696375

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: DECLINE
   AGI ECOMMERCE LTD demonstrates a persistently weak financial position with increasing net liabilities over the past four years. The company’s negative net current assets and shareholders’ funds indicate insufficient working capital and an inability to meet short-term obligations without external funding. The absence of employees and minimal current assets further constrain operational capacity and cash generation potential. Given the ongoing net liability position and limited financial resources, the risk of default on any credit facility is high. Therefore, extending credit at this stage is not advisable.

2. Financial Strength:
   The company is classified as a micro-entity with very limited share capital (£100). The net liabilities have grown from -£2,614 in 2020 to -£8,284 in 2024, showing a deteriorating equity base. Current liabilities exceed current assets by a significant margin, reflecting poor liquidity and negative working capital. There are no fixed assets reported, and no employees are recorded, suggesting minimal operational scale. This weak balance sheet position undermines financial stability and resilience.

3. Cash Flow Assessment:
   Current assets stand at only £441 against current liabilities of £8,725, indicating an acute working capital deficiency. The company is unlikely to generate sufficient cash internally to service debts or fund operations. The lack of employees and minimal asset base suggests limited cash inflows from trading activities. Without external capital injections or significant improvement in operational cash flows, liquidity risks remain elevated.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities for signs of improvement or further deterioration.
• Watch for timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.
• Observe any capital restructuring or equity injections by the sole shareholder to strengthen the balance sheet.
• Track operational developments such as acquisition of assets, hiring of staff, or sales growth that might improve cash flow.