AMAD PROJECT SERVICES LTD

Executive Summary

AMAD PROJECT SERVICES LTD shows a concerning financial position at its first year-end with negative net assets and working capital deficits, indicating significant solvency and liquidity risks. While compliance with filing deadlines is positive, the company’s ability to meet obligations and sustain operations requires careful scrutiny. Further due diligence on liabilities and funding plans is recommended before investment consideration.

AMAD PROJECT SERVICES LTD - Analysis Report

Company Number: SC795213

Analysis Date: 2025-07-29 19:54 UTC

1. Risk Rating: HIGH
   The company's financial statements reveal significant negative net assets and negative net current assets, indicating insolvency risk despite being a newly formed entity. The liabilities exceed assets by over £13,000, suggesting inability to meet short-term obligations.

2. Key Concerns:

• Negative net assets of £13,140: This indicates the company is technically insolvent on a balance sheet basis at the first reporting date.
• Current liabilities (£26,507) double current assets (£13,400): Negative working capital puts pressure on liquidity and operational continuity.
• No audit performed and micro-entity exemption used: Limited assurance on financial accuracy; risk that issues may be understated or undisclosed.

3. Positive Indicators:

• The company is recently incorporated (January 2024) and currently active with no overdue filings, suggesting compliance with statutory requirements.
• Sole director and 100% shareholder is clearly identified and local to the registered address, which may facilitate governance oversight.
• The company has a small workforce (2 employees), which limits fixed costs and may allow operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to determine if these are trade creditors, loans, or director-related debts, and assess their collectability or settlement terms.
• Clarify the source of ongoing funding or capital injections planned to address the negative equity and working capital deficit.
• Review business model viability and contracts or orders in hand, given the negative financial position in the first accounting period.
• Confirm no undisclosed related party transactions or contingent liabilities that could worsen financial position.
• Assess the director’s capability and track record in managing and growing the business given the current financial stress.