Company Number: 13250571

Analysis Date: 2025-07-29 16:55 UTC

Financial Health Assessment: AIG Securities Limited (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
AIG Securities Limited shows a stable and improving financial condition with positive net current assets and net assets, indicating a "healthy cash flow" and a capacity to meet short-term obligations. The company's working capital has increased over the past year, reflecting strengthened liquidity. However, the company's financial profile is somewhat concentrated in debtors and related party transactions, which introduces some risk if those debts are not collectible. The overall score reflects solid fundamentals but with cautionary notes on asset concentration and limited equity base.

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2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 (£)	2023 (£)	Interpretation
Debtors (Current Assets)	5,503,063	4,645,602	High and growing receivables, mostly related party; indicates reliance on collectability.
Current Liabilities	5,225,506	4,576,947	Increasing liabilities but still covered by current assets.
Net Current Assets	277,557	68,655	Positive and improving liquidity ("healthy working capital").
Net Assets / Shareholders' Funds	277,557	108,655	Increasing equity base, indicating accumulated retained earnings and financial strengthening.
Share Capital	1	1	Minimal share capital; equity primarily from retained earnings.
Related Party Balances	Debtors: 5,500,547 Creditors: 5,168,126	Similar levels	Substantial related party balances on both sides; risk if unsettled.
Tangible Fixed Assets	0	40,000	Disposal of motor vehicles; no tangible assets remaining, possibly reducing fixed costs.
Interest Income (Related Party)	294,557	198,804	Growing interest income supports profitability.
Interest Expense (Related Party)	42,628	45,861	Low interest expense relative to income.

Interpretation:

• The company’s current assets slightly exceed current liabilities, providing a buffer to cover short-term debts—this is akin to a "healthy pulse" in liquidity.
• Net assets have more than doubled year-on-year, showing improved financial "vitality."
• The very small share capital (£1) means shareholders’ equity is mainly retained earnings, signaling the company has generated profits or accumulated reserves since inception.
• The large receivables from a related party represent a "symptom" requiring close monitoring, as any delay or default in collection could impact liquidity.
• Disposal of fixed assets reduces tangible asset base but may lower fixed overheads, possibly improving cash flow.
• Interest income exceeding interest expense indicates positive net financing income, enhancing profitability.

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3. Diagnosis: Overall Financial Condition

AIG Securities Limited is demonstrating financial stability with improving liquidity and equity strength, suggesting sound operational management and effective working capital control. The company’s growing net assets and net current assets represent a positive "health trend" and capacity to withstand short-term financial pressures.

However, the heavy reliance on related party balances as both debtors and creditors is a notable "symptom of dependency", which may expose the company to counterparty risk if these parties face financial difficulties. The absence of tangible fixed assets may reduce depreciation charges and lower fixed costs but also leaves the company with fewer physical resources.

The company's financial statements are unaudited and prepared under the small companies regime, which means less detailed external scrutiny — a factor to consider in the overall assessment.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Strengthen Debtor Management & Related Party Monitoring

   • Closely monitor and manage related party receivables to ensure timely collection and minimise credit risk exposure.
   • Establish formal repayment plans or guarantees if not already in place.

2. Diversify Asset Base

   • Consider acquiring or retaining some tangible assets to balance the asset profile and possibly support operations more robustly.

3. Increase Share Capital or External Equity Injection

   • A minimal share capital base limits financial flexibility. Increasing equity could improve creditor confidence and provide additional capital for growth or risk mitigation.

4. Maintain and Improve Liquidity Ratios

   • Continue to build net current assets to ensure a stronger liquidity "defense" against unforeseen financial stress.

5. Prepare for Audit or Enhanced Review

   • As the company grows, consider moving beyond exemption to audited accounts to increase transparency and stakeholder confidence.

6. Risk Management on Related Party Transactions

   • Formalise related party agreements with clear terms and interest rates to align with market conditions and reduce potential conflicts.

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