AJC MULTI SERVICES LTD

Executive Summary

AJC MULTI SERVICES LTD exhibits a weakening financial position with net liabilities and poor liquidity, raising concerns about its ability to service debt. The absence of employees and shrinking current assets further undermine business resilience. Credit approval is not recommended without significant financial improvement or capital support.

AJC MULTI SERVICES LTD - Analysis Report

Company Number: SC682265

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: DECLINE
   AJC MULTI SERVICES LTD demonstrates a deteriorating financial position with net liabilities reported in the most recent 2023 accounts. The company has moved from positive net assets of £8,509 in 2020 to net liabilities of £6,693 in 2023. This indicates a negative equity position, which raises significant concerns about solvency and the ability to service debt. The absence of employees and minimal operational scale further undermine confidence in creditworthiness. Without evidence of improved cash flow or capital injection, extending credit is not advisable.

2. Financial Strength:
   The balance sheet shows a consistent decline in net current assets from £8,375 in 2020 to negative £6,694 in 2023. Fixed assets have been fully written down, and current assets have decreased substantially to just £3,154. Current liabilities have increased relative to assets, resulting in negative shareholders’ funds. This weak financial structure suggests poor financial stewardship or operational challenges. The micro-entity size limits disclosure but the trend is clearly adverse.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a substantial margin, indicating negative working capital and potential liquidity constraints. The company holds no fixed assets of value and minimal current assets, limiting its ability to meet short-term obligations or unexpected expenses. There is no indication of positive cash flow generation or external funding sources. This liquidity risk is heightened by the lack of employees and unclear business activity.

4. Monitoring Points:

• Monitor future filings for any reversal of net liabilities and improvement in liquidity.
• Watch for changes in director appointments or ownership that might signal restructuring.
• Evaluate the company’s trade activity and cash generation capacity if new financial data becomes available.
• Confirm if any capital injections or debt restructuring occur to support solvency.