AI GROUP HOLDINGS LIMITED

Executive Summary

AI GROUP HOLDINGS LIMITED demonstrates high financial risk characterized by negative equity and substantial long-term liabilities exceeding debtor balances. Despite compliance with filing requirements and a positive current asset position, the absence of employees and reliance on large debtor amounts raise concerns about liquidity and operational sustainability. Further due diligence focused on debtor quality and creditor terms is recommended to clarify the company’s true financial health and business prospects.

AI GROUP HOLDINGS LIMITED - Analysis Report

Company Number: 13021584

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and operational risks due to negative shareholders' funds, large creditor balances exceeding current assets, and zero employees, indicating potential challenges in meeting obligations and sustaining operations.

2. Key Concerns:

• Negative Net Assets/Shareholders' Funds: As of 30 November 2023, shareholders’ funds stand at approximately -£775,712, reflecting accumulated losses or liabilities exceeding assets, which signals financial distress.
• High Long-Term Liabilities vs. Debtors: The company reports creditors due after more than one year totaling £5,508,182, while debtor balances are £4,688,301; this mismatch poses solvency risks, especially if debtor collection is uncertain or delayed.
• No Employees and Limited Operational Activity: The company reported zero employees during the year, consistent with its SIC code as a holding company, but this raises questions about operational capacity and future sustainability.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: The net current assets figure is positive at £4,732,570, primarily driven by debtors, suggesting some short-term liquidity buffer.
• No Overdue Filings: The company is current with its accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified with no recorded disqualifications, signifying stable governance structure at ownership level.

4. Due Diligence Notes:

• Assess Quality and Collectability of Debtors: Investigate the nature, age, and recoverability of the £4.69 million debtor balance to verify if it is realizable or impaired.
• Review Terms and Conditions of Long-Term Creditors: Examine the structure, covenants, and repayment schedules of the £5.5 million long-term liabilities to understand refinancing or default risks.
• Evaluate Business Model and Future Plans: Clarify the company’s operational strategy given zero employees and the holding company classification, including whether it holds subsidiaries or investments generating cash flows.
• Confirm No Related Party Transactions Affecting Financial Position: Scrutinize related party loans and transactions, especially loans from directors and amounts owed to group undertakings, for potential financial risk or conflicts of interest.