AJC LETTINGS LIMITED

Executive Summary

AJC LETTINGS LIMITED demonstrates moderate solvency risk primarily due to high long-term liabilities and negative working capital. However, it maintains a positive net asset position and complies with statutory filing requirements. Further due diligence on creditor terms and operational cash flows is advised to fully assess financial stability and sustainability.

AJC LETTINGS LIMITED - Analysis Report

Company Number: SC722932

Analysis Date: 2025-07-29 13:33 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position but has a significant level of long-term liabilities relative to equity, indicating moderate solvency risk. The micro-entity status limits detailed financial disclosures, so the assessment is based on limited data.

2. Key Concerns:

• High Long-Term Liabilities: Creditors due after one year are £47,226, which is substantially higher than shareholders’ funds (£4,558), suggesting leveraged financing that may pressure solvency if cash flows weaken.
• Negative Net Current Assets: The current assets (£6,986) are significantly lower than current liabilities (£31,036), leading to a net current liabilities position (~£24,050), indicating potential short-term liquidity constraints.
• No Employees and Limited Operational Data: The company operates with zero employees and limited operational information, raising questions about the scale and sustainability of its business activities.

3. Positive Indicators:

• Positive Net Assets: Despite liabilities, the company maintains a positive net asset value (£4,558), which improved from the previous year (£270), demonstrating some equity buffer.
• Regular Filings and Compliance: The company is up to date with both accounts and confirmation statement filings, reflecting good governance and regulatory compliance.
• Experienced Single Director and Principal Control: The director and sole significant controller, Mrs Jacqueline Macdougall, appears stable with no adverse records, which supports consistent management oversight.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to understand repayment obligations and whether they are secured or contingent.
• Assess cash flow statements and any available management accounts to evaluate liquidity trends and operational cash generation.
• Investigate the company’s actual business model and revenue streams given the absence of employees and limited asset base.
• Confirm no director disqualifications or related party transactions that could affect governance or financial stability.