AMALGAMATION LTD

Executive Summary

Amalgamation Ltd is a small, active management consultancy with a strong liquidity position and no regulatory compliance issues. However, the notable decline in net assets and trade debtors, alongside sole director control, should be further examined to ensure continued financial and operational stability. Overall, the company presents a low solvency risk at present but warrants monitoring of its financial performance trends.

AMALGAMATION LTD - Analysis Report

Company Number: 13711535

Analysis Date: 2025-07-29 15:56 UTC

1. Risk Rating: LOW
   Amalgamation Ltd displays a strong liquidity position with net current assets well above current liabilities, positive net assets, and no overdue filings. The company is small, privately held, and has been consistently solvent since incorporation in 2021.

2. Key Concerns:

• Declining net assets: Net assets have decreased from £62,102 in 2023 to £54,173 in 2024, which warrants monitoring to understand the cause.
• Significant drop in debtors: Trade debtors have fallen sharply from £8,280 in 2023 to zero in 2024, potentially indicating changes in client payment patterns or revenue recognition that should be reviewed.
• Reliance on a single director/PSC: The company is wholly owned and controlled by one individual, which concentrates governance and operational risk.

3. Positive Indicators:

• Strong liquidity: Cash balances remain robust at over £62,000 with current liabilities under £9,000, indicating good short-term financial health.
• Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance to date.
• Small company exemption: The company is taking advantage of simplified reporting, appropriate for its size, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the reasons behind the reduction in debtors and net assets to assess sustainability of revenue and profitability.
• Review director’s involvement and any potential conflicts or related party transactions given sole ownership and control.
• Confirm the company’s business pipeline and future contracts to ensure ongoing operational viability, given the consultancy nature of the business.
• Verify tax liabilities and provisions, especially corporation tax creditor which remains substantial.