Company Number: 12793922

Analysis Date: 2025-07-19 12:34 UTC

1. Credit Opinion: DECLINE
   AMBEG LTD demonstrates weak financial health, with significant and increasing negative net assets and shareholders' funds (£-10,708 in 2024, worsening from £-4,248 in 2023). The company’s inability to generate retained earnings or positive equity indicates financial distress. Current liabilities are low but long-term creditors (£11,870) exceed total assets less current liabilities, suggesting reliance on external funding and potential solvency issues. Given these factors, the company’s capacity to service new credit or loans is highly questionable.

2. Financial Strength:
   The balance sheet shows persistent negative net assets and shareholders’ funds, indicating accumulated losses. Fixed assets are minimal (£1,142) and cash reserves are negligible (£21 at 2024 year-end). Long-term liabilities (£11,870) remain unchanged and outweigh the company’s tangible asset base, reflecting an over-leveraged position with limited cushion to absorb shocks. The company operates with no employees, limiting operational scale and revenue generation potential.

3. Cash Flow Assessment:
   Cash on hand has severely depleted from £6,366 in prior years to only £21 at the latest year-end, highlighting severe liquidity constraints. Net current assets are almost nil (£20), indicating minimal working capital to cover short-term obligations. The company’s cash flow position appears precarious, with insufficient liquidity to meet ongoing operating expenses or unexpected demands. This raises significant concerns about the company’s short-term viability.

4. Monitoring Points:

• Watch for any improvement or further deterioration in net assets and shareholders’ funds.
• Monitor cash flow trends and working capital levels closely to assess liquidity recovery or decline.
• Track changes in long-term creditor balances and any new borrowing.
• Review management actions aimed at improving profitability, reducing losses, or restructuring debt.
• Keep an eye on director or shareholder interventions to recapitalize or support the business financially.