Company Number: 15025950

Analysis Date: 2025-07-20 13:09 UTC

Risk Rating: HIGH

Justification: The company, AITKEN ADVISORY LIMITED, has been active for just over one year since incorporation in July 2023. The latest unaudited abridged accounts (year ended July 31, 2024) show net liabilities of £5,461, indicating negative net assets and an accumulated loss position. Current liabilities exceed fixed assets, and there is no disclosure of current assets, implying potential liquidity constraints. The company is very small with only one employee and minimal fixed assets (£1,390 net book value). While timely filing compliance is demonstrated, the financial position suggests early-stage operational challenges and possible cash flow stress.

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Key Concerns

1. Negative Net Assets and Accumulated Losses: The company’s balance sheet shows net liabilities of £5,461, with a negative profit and loss reserve of the same amount. This raises solvency concerns as the company’s liabilities exceed its assets.

2. Liquidity Issues: The accounts disclose current liabilities of £6,851 but do not report current assets explicitly, suggesting insufficient working capital or liquidity to cover short-term obligations.

3. Limited Operational Scale and Financial History: Incorporated only in July 2023 with a single employee and minor tangible fixed assets, the company lacks an operating track record and scale, increasing business risk and uncertainty regarding sustainability.

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Positive Indicators

1. Timely and Compliant Filings: The company’s annual accounts and confirmation statement are filed on time and not overdue, indicating good governance and regulatory compliance.

2. Experienced Directors: The directors include a British actuary and a solicitor, potentially bringing relevant expertise to management and governance.

3. Clear Ownership and Control Structure: One individual (Mr Gordon Montgomery Aitken) holds 75-100% of shares and voting rights, which can facilitate decisive control and potentially ease capital support or decision-making.

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Due Diligence Notes

• Cash Flow and Current Assets Detail: Verify the existence and level of current assets (cash, receivables) to better understand liquidity and working capital dynamics.

• Business Model and Revenue: Investigate the company’s revenue generation, client base, and contracts to assess operational viability and prospects for profitability.

• Capital Injection Plans: Determine if the sole shareholder plans to inject additional funds to support the company through early losses or working capital demands.

• Director and Management Background: Further check for any past adverse records related to the directors beyond what is publicly noted here.

• Future Financial Projections: Request management forecasts and budgets to evaluate the company’s path to profitability and solvency restoration.

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