Company Number: 12539138

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AM QS SERVICES LTD demonstrates modest but stable financials typical of a micro-entity in quantity surveying. The company holds a positive net asset position and has maintained compliance with filing requirements, indicating sound governance. However, the decline in current assets and working capital from 2023 to 2024 suggests some tightening of liquidity, warranting monitoring. The limited scale and single-employee structure imply limited operational breadth and some vulnerability to market fluctuations. Credit approval is recommended with conditions including regular review of liquidity metrics and prompt notification of any significant operational changes.

2. Financial Strength:
   The company’s balance sheet shows net assets of £17,388 as of 31 March 2024, down slightly from £18,849 the prior year. Fixed assets remain low and stable (~£3,300), consistent with a service-based business with minimal capital expenditure. Shareholders’ funds are positive, indicating equity is intact. The drop in current assets from £47,539 to £30,047 is notable and reflects reduced cash or receivables. Current liabilities have halved from £32,213 to £15,956, which improves the net current assets position but may also reflect reduced short-term obligations or supplier payments. Overall, the balance sheet is sound but with limited financial buffer.

3. Cash Flow Assessment:
   Net current assets declined from £15,326 in 2023 to £14,091 in 2024 (current assets minus current liabilities). While still positive, this contraction suggests tighter liquidity. The company’s working capital remains sufficient for day-to-day operations but with limited cushion for unexpected expenses or delays in receivables. The cash position is not explicitly stated but inferred to have diminished. Given the micro-entity size, cash flow may be vulnerable to client payment delays or project timing variations. Continued close management of receivables and payables is advised.

4. Monitoring Points:

• Liquidity trends: Monitor current asset composition and cash flow regularly to detect tightening liquidity early.
• Receivables aging: Ensure timely collection to maintain working capital.
• Profitability and cash generation: Review future accounts for evidence of sustainable earnings and operational cash flow.
• Director involvement: With 75-100% control by one director, assess any concentration risk or changes in management.
• Market conditions: Watch for sector-specific risks impacting quantity surveying demand.