AJ GIBB SOLUTIONS LTD

Executive Summary

AJ GIBB SOLUTIONS LTD is a micro-entity with minimal equity, persistent working capital deficits, and heavy reliance on external creditors, indicating weak financial resilience and limited ability to service debt. Without evidence of operational profitability or sufficient cash flows, the company presents a high credit risk. Monitoring should focus on liquidity improvements and financing changes to reassess creditworthiness.

AJ GIBB SOLUTIONS LTD - Analysis Report

Company Number: SC682149

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: DECLINE
   AJ GIBB SOLUTIONS LTD exhibits weak financial structure with net assets of only £50 and consistently negative working capital (net current liabilities of £2,950 in 2024 and £1,950 in 2023). The company relies heavily on long-term creditors (£51,750 in 2024), indicating significant external funding, but has no employees and minimal share capital. This suggests limited operational scale and potential difficulty in generating sufficient cash flows to service debt. The micro-entity status and small asset base reduce the company’s ability to withstand financial stress or unexpected downturns. Without evidence of profitability or cash generation, credit exposure carries high risk.

2. Financial Strength
   The balance sheet reveals a declining fixed asset base (£75,935 in 2023 to £54,750 in 2024) and persistent reliance on long-term liabilities nearly equal to fixed assets, resulting in negligible net equity (£50). Current liabilities exceed current assets by £2,950, indicating working capital deficits and potential liquidity strain. The absence of shareholders’ funds beyond nominal capital reflects minimal financial buffer. Overall, the company’s financial strength is very weak, with a fragile capital structure and limited asset backing.

3. Cash Flow Assessment
   No employees and small asset base suggest very limited operating activity and cash inflows. The negative net current assets indicate ongoing short-term liquidity pressure, implying the company may struggle to meet immediate obligations without continuous external financing. Lack of detailed profit and loss data limits full cash flow analysis, but the small scale and negative working capital point toward constrained cash generation capacity. There is no indication of retained earnings or reserves to support operations, raising concerns about sustainability.

4. Monitoring Points

• Working capital trends: any improvement or worsening of net current assets
• Fixed asset levels: to assess investment or asset disposals impact
• Changes in long-term creditor balances: to understand financing arrangements
• Profitability and cash flow statements when available: to verify operational viability
• Director and shareholder actions: any capital injections or restructuring efforts
• Compliance with future filing deadlines to avoid regulatory risk