AM GROUNDWORK & LABOUR LTD

Executive Summary

AM GROUNDWORK & LABOUR LTD exhibits a noticeable contraction in net assets and liquidity from its prior year, which elevates medium-term financial risk. Despite this, the company remains compliant with filing requirements and maintains a modest positive working capital position. Further analysis of cash flows and asset changes is recommended to better understand operational sustainability and solvency risks.

AM GROUNDWORK & LABOUR LTD - Analysis Report

Company Number: 13160783

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: MEDIUM
   The company shows a notable reduction in net assets and current assets in the latest financial year, signaling potential financial strain. However, there are no overdue filings or formal insolvency proceedings, and the company remains active with a single director.

2. Key Concerns:

• Significant decline in net assets from £70,413 (2023) to £24,000 (2024), indicating erosion of financial buffer.
• Sharp decrease in current assets from £44,637 to £4,412, raising liquidity concerns and potential cash flow difficulties.
• Minimal share capital (£1.00) and limited equity base may restrict ability to absorb financial shocks or invest in growth.

3. Positive Indicators:

• No overdue accounts or confirmation statement filings, indicating compliance with statutory requirements.
• Net current assets remain positive (£4,400), suggesting the company can meet its short-term liabilities at the balance sheet date.
• Stable director presence with no disqualification records noted, supporting operational continuity.

4. Due Diligence Notes:

• Investigate the causes behind the steep decline in current assets and net assets between 2023 and 2024 to assess sustainability.
• Review cash flow statements and creditor/payment patterns for signs of liquidity stress.
• Confirm absence of contingent liabilities or off-balance sheet obligations that may impact solvency.
• Evaluate the company's business model and contracts given the micro-entity status and limited employee count (1 average employee).
• Ascertain whether the reduction in fixed assets is due to disposals or depreciation impacting operational capacity.