AMAIZ LTD
Company number 10977384 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: AMAIZ LTD
1. Credit Opinion: CONDITIONAL
Amaiz Ltd is a pre-profit fintech operating in the challenger banking sector, currently unable to service debt from operating cash flows. The company recorded a loss of £784,211 (2020: £1,220,922) against turnover of just £175,673 (2020: £8,604). While revenue growth is encouraging and losses are narrowing, the business remains entirely dependent on shareholder funding to continue as a going concern. Any credit facility would require parent company guarantee from Amaiz Group or personal guarantee from the ultimate beneficial owner, Mr Sergei Dobrovolskii, alongside financial covenants protecting the bank's position.
2. Financial Strength
Balance Sheet Position - Net assets of £1,126,126 (2020: £910,337) — improvement driven by capital injection rather than trading performance - Shareholders' funds increased from £4,032,001 to £5,032,001, indicating approximately £1M of additional equity was injected during the period - Share capital remains nominal at £10, meaning the substantial equity position is comprised almost entirely of share premium and accumulated losses
Key Concerns: - Accumulated losses are being funded by shareholder capital rather than retained profits — this is typical of early-stage fintechs but represents a going concern dependency - The company holds FCA authorisation, which imposes minimum capital adequacy requirements; the positive net asset position suggests these are currently met, but the margin for deterioration is limited - Total assets in 2020 were £946,159; the 2021 figure is not disclosed in the summary data, but net asset growth of ~£216k alongside a £784k loss implies further capital injection or reclassification
Assessment: The balance sheet is solvent but fragile. Capital adequacy is maintained through ongoing shareholder support rather than organic profitability.
3. Cash Flow Assessment
Operating Cash Flows - Revenue of £175,673 is materially insufficient to cover operating costs, with the £784,211 loss implying operating expenditure of approximately £960k - The company is in a classic cash-burn phase, common to early-stage digital banks building customer acquisition
Liquidity and Working Capital - The company states it maintains capital and liquidity levels meeting or exceeding FCA regulatory requirements - Surplus client deposits reportedly increased during 2020, though client deposits represent liabilities rather than available liquidity for the company's own use - No dividend payments have been made (appropriate given losses)
Going Concern - Directors explicitly state they do not consider COVID-19 to cause material uncertainty regarding going concern - However, the company's survival is contingent on continued shareholder commitment to financing through to profitability — this is an external dependency, not self-sustaining
Assessment: Cash flow from operations is deeply negative. The company cannot service additional debt from trading income. Any lending would effectively be dependent on the shareholder's willingness and ability to continue funding losses.
4. Monitoring Points
| Metric | Rationale |
|---|---|
| Monthly net burn rate | Critical indicator of how quickly shareholder capital is being consumed |
| Revenue run rate | Assess whether growth trajectory is being maintained post-COVID |
| Regulatory capital position | FCA capital adequacy ratios must remain above minimum thresholds |
| Client deposit levels | Deposit growth indicates market traction; deposit loss would signal competitive pressure |
| Shareholder funding commitments | Any withdrawal or reduction in funding commitment would immediately threaten viability |
| Parent company financials | Amaiz Group's financial health is directly relevant given the control and funding dependency |
| Loss reduction trajectory | Monitor whether losses continue narrowing toward breakeven |
| Director changes | Resignation of key personnel (e.g., Compliance Head resignation Oct 2021) should be flagged |
Additional Risk Factors
Concentration Risk: Mr Dobrovolskii holds >75% of shares and voting rights. Single-person control creates key-person dependency and decision-making concentration.
Sector Risk: Challenger banking is intensely competitive with well-capitalised incumbents and numerous fintech competitors. The path to sustainable profitability is uncertain and typically requires significant scale.
Regulatory Risk: As an FCA-authorised firm, any regulatory breach or capital shortfall could result in restrictions on operations, directly impacting the company's ability to generate revenue.
Accounts Timeliness: The 2021 accounts were not approved until 20 December 2022 — nearly 12 months after year-end. This suggests potential administrative capacity constraints.