Company Number: 12532953

Analysis Date: 2025-07-29 13:24 UTC

Financial Health Assessment: AMBLE TRADING LTD (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with net liabilities and a negative net asset position in the latest financial year. While it has maintained operations and complied with filing deadlines, the worsening working capital and net assets indicate a fragile financial condition.

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2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Fixed Assets	176	Very low fixed asset base, typical for a micro entity, indicating limited investment in long-term assets.
Current Assets	15,284	Moderate current assets, mostly cash equivalents or receivables.
Current Liabilities	22,355	Current liabilities have increased significantly, indicating rising short-term obligations.
Net Current Assets	-6,808	Negative working capital—a symptom of liquidity strain or cash flow pressure.
Total Assets less Current Liabilities	-6,632	Negative, confirming liabilities exceed total assets, a red flag for solvency.
Net Assets (Shareholders' Funds)	-6,966	Negative equity position, signaling accumulated losses or financial strain.
Share Capital	2	Minimal share capital, common in micro entities but highlights low equity buffer.
Number of Employees	2	Small workforce consistent with micro entity classification.

Trends to Note:

• Net assets shifted from positive £628 in 2023 to negative £-6,966 in 2024; a significant deterioration.
• Current liabilities rose sharply from £16,986 to £22,355, outpacing current assets growth.
• Working capital moved from a healthy positive position to a deficit, indicating potential liquidity problems.

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3. Diagnosis:

Symptoms Analysis:
The company is exhibiting classic symptoms of financial distress: negative working capital and net liabilities. This "unhealthy cash flow" state suggests that AMBLE TRADING LTD is struggling to meet its short-term obligations with its available current assets. The plunge from positive equity to a negative position over the latest year signals accumulated losses or increased debt burden that has eroded the shareholder funds.

The micro entity nature and the small asset base mean the company has limited financial resilience. The directors’ advance of £272 interest-free to one director, without fixed repayment terms, could exacerbate cash flow strain if not managed carefully.

On the positive side, the company remains active, compliant with filing deadlines, and has maintained a stable employee count, which indicates ongoing operations.

Underlying Business Health:
The real estate agency sector (SIC 68310) can be volatile, and the sharp shift in financial position may reflect operational challenges, market conditions, or delayed payments. The negative net assets and working capital "symptoms" require prompt attention to avoid insolvency risk.

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4. Prognosis:

If current trends persist without corrective action, the company risks further deterioration in liquidity and solvency, increasing the potential for financial distress that could lead to formal insolvency processes. However, with appropriate interventions, including improving cash flow management, renegotiating liabilities, or capital injection, the financial health could be stabilized.

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5. Recommendations:

• Improve Liquidity Management: Monitor and accelerate cash inflows; review debtor collection practices and negotiate longer payment terms with creditors to ease working capital pressure.
• Capital Injection: Consider fresh equity funding or shareholder loans to restore positive net assets and build a financial buffer.
• Cost Control: Review operational expenses to reduce outflows and protect cash reserves.
• Director Loans: Formalize terms for director advances to ensure clarity and avoid further cash flow strain.
• Financial Monitoring: Implement regular financial health reviews and cash flow forecasts to detect and address issues early.
• Seek Professional Advice: Engage a financial advisor or insolvency practitioner for tailored restructuring advice if necessary.

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