AM DIRECT LTD

Executive Summary

AM Direct Ltd is a micro-entity with modest positive net assets and no regulatory filing issues to date, indicating basic financial stability and compliance. However, the company's very small scale, single-person management, and limited equity base present concerns regarding operational resilience and governance. Further due diligence is recommended to fully assess liquidity and business viability.

AM DIRECT LTD - Analysis Report

Company Number: 14355453

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows modest positive net current assets and shareholder funds, with no overdue filings or liquidation status. However, the very small scale of operations, limited employee count (1 person), and minimal equity buffer suggest a constrained financial base that could be vulnerable to operational or cash flow shocks.

2. Key Concerns:

• Limited Financial Scale and Buffer: Shareholders’ funds and net current assets are low (£2,414 at 2024 year-end), indicating limited capacity to absorb losses or finance growth internally.
• Single Director and Shareholder Concentration: Mr. Aabid Malji holds 100% control and is the sole director and secretary, which could pose governance and succession risks.
• Micro Entity Status with Limited Disclosure: As a micro-entity exempt from audit, detailed financial scrutiny is limited, reducing transparency for investors.

3. Positive Indicators:

• Timely and Compliant Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance on statutory matters.
• Positive Net Working Capital: The company maintains a small but positive net current asset position, suggesting it can meet short-term liabilities as of the latest accounts.
• Consistent Financial Position: Year-on-year net assets and current assets have increased modestly, showing some stability and slight growth.

4. Due Diligence Notes:

• Obtain more detailed management accounts or cash flow statements to assess liquidity beyond balance sheet snapshots.
• Review underlying business model and revenue streams given the very small scale and limited employee base.
• Investigate related party transactions or loans given the single controlling shareholder/director structure.
• Confirm absence of any director disqualifications or compliance issues beyond filings.
• Assess market position within wholesale electronic and telecommunications equipment sector to gauge growth potential.