A&J CAPITAL INVESTMENTS LIMITED

Executive Summary

A&J Capital Investments Limited is currently in a financially weak position marked by negative net assets, significant liabilities, and poor liquidity. The company depends heavily on shareholder funding, with limited operational cash flow, increasing credit risk. Credit approval is not recommended without substantial improvements in financial health and cash flow generation.

A&J CAPITAL INVESTMENTS LIMITED - Analysis Report

Company Number: 13804341

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: DECLINE
   A&J Capital Investments Limited displays significant financial stress. The company has a negative net asset position (£-16,089) and net current liabilities of £116,610 as of the latest accounts. Moreover, it carries a substantial long-term creditor balance of £1,000,000 owed to shareholders. The lack of trade debtors and minimal current assets relative to liabilities indicates weak liquidity and poor short-term repayment capacity. Given these factors, the company does not demonstrate adequate financial strength or cash flow to support additional credit without substantial risk.

2. Financial Strength:
   The balance sheet shows the company holds tangible fixed assets valued at £1,100,521, which is a positive asset base. However, these fixed assets are largely offset by significant liabilities, including £124,242 current liabilities and a £1,000,000 long-term loan from shareholders. The company’s negative shareholders’ funds and net liabilities position reflect accumulated losses or funding through debt rather than equity. The financial trajectory does not show improvement from the previous year, and net current assets deteriorated from £-16,019 in 2022 to £-116,610 in 2023, indicating worsening working capital deficits.

3. Cash Flow Assessment:
   Cash on hand is very limited (£7,632), with no trade debtors reported in the latest year, implying minimal incoming cash flow from operations. The company relies heavily on director and shareholder funding, as evidenced by £116,327 owed to directors and £1,000,000 owed to shareholders. The absence of trade receivables and the presence of large short- and long-term liabilities suggest constrained liquidity and working capital challenges. This raises serious concerns about the company’s ability to meet its short-term obligations without continued external financial support.

4. Monitoring Points:

• Monitor changes in net current assets and liquidity ratios to assess if working capital improves.
• Track the company’s ability to generate trade receivables and cash from operations to reduce reliance on shareholder loans.
• Watch for any restructuring or repayment plans regarding the £1,000,000 owed to shareholders.
• Review director conduct and related party transactions for any potential risks or conflicts.
• Keep an eye on the company’s filing compliance and timely submission of financial statements.