Company Number: 12846804

Analysis Date: 2025-07-19 12:26 UTC

1. Credit Opinion: DECLINE
   AIO APP LIMITED demonstrates significant and persistent negative net assets and working capital deficits. The company's liabilities substantially exceed its assets, and there is no indication of profitability or capital injection to restore financial health. With net current liabilities increasing from £3,790 in 2020 to £8,515 in 2024, the business does not currently have the liquidity to meet short-term obligations. The absence of employees and minimal fixed assets suggest limited operational scale and capacity. The company's financial trajectory is declining, with deteriorating balance sheet strength over the past four years. Without clear evidence of turnaround plans or external financial support, the credit risk is high, and approval for new credit facilities is not recommended.

2. Financial Strength:
   The balance sheet reveals a micro-entity with very limited fixed assets (£120 in 2024) and nominal current assets (£20). Current liabilities have grown to £8,535, resulting in net current liabilities of £8,515 and negative shareholders' funds of £8,395. The company has been operating with a consistent deficit since inception, indicating ongoing losses or withdrawals exceeding capital contributions. The share capital is nominal (£10), and the controlling shareholder holds 75-100% ownership, which may limit external capital inflows. Overall, the financial position is fragile with no buffer to absorb shocks.

3. Cash Flow Assessment:
   The negative net current assets position indicates poor liquidity and working capital management. The company’s current assets are almost negligible compared to its liabilities due within one year, implying a high risk of default on short-term debts. There is no indication of cash reserves or receivables to support operations. The absence of employees suggests minimal ongoing operating expenses; however, the company likely relies on external financing or shareholder advances to meet obligations. Without cash flow statements, the assumption is that cash flow is insufficient and negative.

4. Monitoring Points:

• Cash generation and liquidity improvements: Watch for any positive change in current assets relative to liabilities.
• Profitability or capital injections: Monitor for any signs of turnaround or equity infusion from shareholders.
• Director actions: The current director holds significant control; their financial stewardship and strategic plans should be reviewed.
• Filing compliance: Although not overdue, ensure continued timely filing of accounts and returns to monitor financial status.
• External financing or guarantees: Any new credit should be backed by strong security or third-party guarantees.