AJS EVENT PRODUCTIONS LTD

Executive Summary

AJS EVENT PRODUCTIONS LTD is a very early-stage company operating in media equipment rental with limited financial history. The company shows negative profitability and no current assets, raising concerns about liquidity and operational sustainability. However, compliance with filing requirements and positive net asset backing provide some reassurance pending further due diligence on assets and liabilities.

AJS EVENT PRODUCTIONS LTD - Analysis Report

Company Number: 15425418

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company is newly incorporated (January 2024) and has reported a net loss in its first accounting period with minimal turnover and zero current assets. The absence of current assets and the presence of a provision for liabilities indicate potential liquidity and solvency issues.

2. Key Concerns:

• Negative profitability: The company reported a loss of £1,506 on a turnover of only £5,228, indicating early-stage operational challenges.
• Zero current assets with no working capital: This raises concerns about short-term liquidity to meet obligations as they arise.
• Provision for liabilities of £500 despite no current liabilities reported: This suggests anticipated future costs that may impact financial stability.

3. Positive Indicators:

• Positive net assets of £6,185 supported by fixed assets: While current liquidity is weak, the company has some tangible asset backing.
• No overdue filings and compliance with statutory reporting deadlines: Indicates good governance and regulatory compliance to date.
• Ownership and control concentrated with two directors who are also significant shareholders, potentially enabling swift decision-making.

4. Due Diligence Notes:

• Investigate nature and valuation of fixed assets (£6,685) to confirm realizable value under distress or cash flow need.
• Review details behind the £500 provision for liabilities to understand contingent obligations or commitments.
• Assess cash flow forecasts and capital injection plans to support operational sustainability given current lack of liquidity.
• Examine business plan, client contracts or revenue pipeline to evaluate potential for revenue growth beyond the low initial turnover.
• Confirm no director disqualifications or related party transactions that may pose governance risks.