AGM INDUSTRIES GROUP LTD

Executive Summary

AGM Industries Group Ltd is a micro-entity with a solid liquidity position and compliant filing record, indicating low immediate solvency risk. However, the notable reduction in net assets over the last year and the concentrated control structure warrant further examination to ensure operational stability and governance adequacy. Overall, the company presents as financially stable but small scale and closely held, requiring additional scrutiny for sustained investment confidence.

AGM INDUSTRIES GROUP LTD - Analysis Report

Company Number: 12625200

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: LOW
   The company demonstrates strong net asset positions consistently over recent years, with net assets of £358k as of February 2024. There are no indications of overdue filings, and current liabilities are minimal compared to current assets, suggesting low solvency and liquidity risk.

2. Key Concerns:

• Significant decline in net assets from £714k (2023) to £358k (2024), indicating a substantial reduction in financial reserves that warrants further understanding.
• Limited scale and scope of operations as a micro-entity with only one employee, potentially limiting operational stability and growth prospects.
• Reliance on a single individual (Mr. Marco Gennaro) as both majority shareholder and sole director may pose governance risks and concentration of control.

3. Positive Indicators:

• Consistent compliance with statutory filing deadlines; no overdue accounts or confirmation statements.
• Strong liquidity position reflected by current assets significantly exceeding current liabilities, with positive net current assets of £352k.
• Absence of long-term liabilities or provisions, indicating a clean balance sheet without encumbrances.

4. Due Diligence Notes:

• Investigate reasons behind the halving of net assets between 2023 and 2024, including any extraordinary expenses, write-downs, or changes in business operations.
• Review underlying business activities and revenue streams to assess sustainability given the small headcount and micro-entity status.
• Confirm governance arrangements and risk management practices given the concentrated ownership and directorship.
• Verify the accuracy and completeness of financial reporting given unaudited accounts and reliance on micro-entity accounting standards.