AMA FINANCIAL LTD

Executive Summary

AMA FINANCIAL LTD exhibits a high risk profile due to negative net assets and deteriorating liquidity, despite compliance with filing obligations. The company’s operational scale appears minimal with no employees and very low current assets, raising concerns about sustainability. Further investigation into its liabilities and business model is recommended before considering investment.

AMA FINANCIAL LTD - Analysis Report

Company Number: 13338906

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

1. Risk Rating: HIGH
   The company presents significant solvency concerns with negative net assets and a worsening net current asset position as of the latest financial year. The absence of employees and low current assets relative to liabilities exacerbate liquidity risks.

2. Key Concerns:

• Negative Net Assets: As of 31 October 2024, net assets stand at -£8,285, indicating the company’s liabilities exceed its assets, which is a strong solvency red flag.
• Liquidity Deterioration: Current assets have fallen sharply to £48 against current liabilities of £360, resulting in negative net current assets (-£270), suggesting potential cash flow constraints.
• No Employees and Minimal Business Activity: The company reports zero employees and minimal current assets, implying limited operational scale and potential sustainability challenges.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with its accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Single Controlling Director with Full Ownership: Mr Ajmal Hussain has 75-100% share ownership and is the sole director, indicating clear leadership and ownership structure.
• Active Website Presence: The company maintains an active website, suggesting ongoing business activity or at least an intent to maintain market presence.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities, particularly the significant amounts due after more than one year (£8,015), to understand their terms and implications for cash flow.
• Clarify the reason for the sharp reduction in current assets from £367 to £48 in the latest year to assess liquidity trends and working capital management.
• Review the business model and revenue generation capability, given no employees are reported and the company operates in real estate agency and financial intermediation sectors, which typically require active operations.
• Confirm whether any related party transactions or intercompany balances exist that may affect the financial position.
• Ascertain whether there are plans for capital injection or restructuring to address the negative equity situation.