AIM TRADING LIMITED

Executive Summary

AIM TRADING LIMITED is currently experiencing financial distress, characterized by negative net assets and working capital deficits over multiple years, indicating solvency and liquidity challenges. While the company remains compliant with statutory filings, urgent action is needed to inject capital, improve cash flow, and reverse accumulated losses to restore financial health and ensure future viability.

AIM TRADING LIMITED - Analysis Report

Company Number: 13025161

Analysis Date: 2025-07-19 12:25 UTC

Financial Health Assessment Report: AIM TRADING LIMITED

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1. Financial Health Score: D

Explanation:
The company currently exhibits signs of financial distress with persistent negative net assets over three consecutive years. While it remains active and compliant with filing deadlines, the balance sheet shows liabilities exceeding assets, indicating a weak financial position. This score reflects a critical need for financial restructuring or capital injection to restore health.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Net Current Assets (Working Capital)	£-1,049	Negative working capital signals liquidity issues and inability to cover short-term liabilities with current assets. This is a "symptom of distress."
Net Assets (Shareholders' Funds)	£-1,049	Negative net assets means total liabilities exceed total assets, an unhealthy state for long-term sustainability.
Share Capital	£10	Very low equity base; minimal capital buffer to absorb losses.
Current Liabilities	£1,049	Short-term obligations slightly increasing, which the company is currently struggling to cover.
Profit and Loss Account Reserve	£-1,050	Accumulated losses have eroded retained earnings, indicating ongoing unprofitability or lack of income generation.
Compliance Status	On time	No overdue filings, indicating good administrative health despite financial difficulties.

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3. Diagnosis

The "vital signs" reveal AIM TRADING LIMITED is currently in a financially unhealthy state:

• Negative working capital ("unhealthy cash flow symptom") means the company may struggle to meet its short-term obligations as they come due, risking operational disruption.
• Negative net assets show the company is technically insolvent on a balance sheet basis, as liabilities exceed assets. This is a serious "underlying disease" indicating capital erosion.
• The accumulated losses imply the company has been operating at a loss or without generating sufficient profits to build reserves.
• The low share capital means there is little equity buffer to absorb losses or support borrowing.
• The company is still active and compliant, which provides a window of opportunity to address these issues before insolvency procedures become necessary.
• Being classified under SIC code 64301 (investment trusts activity) typically suggests an asset management or investment function, but no fixed or current assets appear on the balance sheet, which is unusual and suggests limited operational or investment activity.

Overall, the financial "symptoms" suggest AIM TRADING LIMITED is in a fragile financial condition, with risks of cash flow strain and solvency concerns unless remedial action is taken.

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4. Recommendations

To improve financial wellness and avoid worsening distress, AIM TRADING LIMITED should consider the following actions:

1. Capital Injection:

   • Seek additional equity investment or shareholder loans to restore positive net assets and strengthen the balance sheet "immune system."

2. Cost Control and Revenue Generation:

   • Review business operations to reduce costs and explore new revenue streams to reverse accumulated losses.

3. Cash Flow Management:

   • Improve working capital by accelerating receivables, negotiating extended payment terms with creditors, or restructuring debts to ease liquidity pressure.

4. Financial Monitoring and Forecasting:

   • Implement regular cash flow forecasting and financial health diagnostics to detect early warning signs and act proactively.

5. Professional Advice:

   • Engage with financial advisors or turnaround specialists to develop a recovery plan tailored to the company's specific circumstances.

6. Asset Utilization or Acquisition:

   • Evaluate if the company can acquire or better utilize assets to generate income, as current accounts show no tangible or current assets, which is a risk factor.

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