AGML TECHNICAL LIMITED

Executive Summary

AGML Technical Limited demonstrates significant financial stress as evidenced by negative net current assets and shareholders’ funds in the latest accounts. Despite maintaining regulatory compliance and a stable workforce, the company’s deteriorating liquidity and solvency positions represent material risk to investors. Further investigation into the causes of increased liabilities and management’s remediation plans is essential before considering investment.

AGML TECHNICAL LIMITED - Analysis Report

Company Number: 13597089

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH

The company exhibits clear signs of financial distress, with negative net current assets and shareholders' funds as of the latest financial year ending September 2024. This indicates solvency risk and potential liquidity challenges.

2. Key Concerns:

• Negative Net Current Assets: The net current assets position deteriorated sharply from a small negative amount (£-4,136) in 2023 to a substantial negative (£-50,018) in 2024, signaling worsening short-term liquidity issues.
• Negative Shareholders' Funds: Shareholders' funds moved from a positive £157 in 2023 to a negative £45,837 in 2024, reflecting accumulated losses or increased liabilities exceeding assets.
• Declining Total Assets Less Current Liabilities: From a slight positive position in 2023 (£157) to a negative position (£-45,837) in 2024, indicating the company’s overall net asset value has become negative.

3. Positive Indicators:

• Timely Filing: Both annual accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Stable Employee Base: The average number of employees remained constant at 4 over the last two years, which may suggest operational continuity.
• Micro-Entity Status: The company is classified as micro, implying a small scale of operations and potentially lower overheads.

4. Due Diligence Notes:

• Investigate the cause of the sharp deterioration in current liabilities and why they increased materially relative to current assets in 2024.
• Review the company’s cash flow statements and creditor payment terms to assess liquidity management and potential solvency threats.
• Examine the director’s strategic plans or restructuring efforts to address the negative equity position.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations impacting financial stability.
• Assess the nature of liabilities driving the significant increase in current liabilities and whether these are trade payables, loans, or accrued expenses.
• Evaluate the company’s client base and revenue streams given the industry classification as management consultancy, to understand sustainability prospects.

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