AMG CONSULTING SERVICES LIMITED

Executive Summary

AMG CONSULTING SERVICES LIMITED demonstrates basic financial stability with positive net assets and liquidity, but recent declines warrant cautious credit exposure. The company’s small scale and sole director control increase risk concentration, so credit should be limited and monitored closely for cash flow and financial deterioration. Overall, conditional approval is appropriate pending ongoing oversight.

AMG CONSULTING SERVICES LIMITED - Analysis Report

Company Number: SC744508

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AMG CONSULTING SERVICES LIMITED is a micro-entity IT consultancy established recently (2022). The company shows positive net current assets and shareholders’ funds, indicating a basic level of financial stability. However, the decline in current assets and net assets from £51,734 in 2023 to £39,340 in 2024 signals some weakening liquidity and financial cushioning. The business is very small with only one employee (the director) and wholly controlled by a single individual, which concentrates risk. While there is no overdue filing or distress indication, credit exposure should be limited and monitored closely, particularly as the company’s financials are modest and show a downward trend in working capital.

2. Financial Strength:
   The company’s balance sheet reveals net current assets of £39,340 as of the latest year-end, down from £51,734 the prior year. Total net assets equal shareholders’ funds, all attributable to the sole director/shareholder. There are no fixed assets disclosed, implying the business likely relies on intangible assets or service provision without significant capital investment. The micro-entity exemption limits the detail available, but the current ratio remains strong (Current Assets £45,276 vs. Current Liabilities £5,936), indicating the company can cover short-term obligations. However, the reduction in current assets and liabilities suggests either a contraction in business activity or working capital usage.

3. Cash Flow Assessment:
   No detailed cash flow statement is available, but the working capital position is positive and sufficient to meet immediate liabilities. The decline in current assets may imply usage of cash or receivables without equivalent replenishment. Given the company has only one employee (director) and minimal balance sheet size, cash flow volatility may be significant. The absence of overdrafts or short-term borrowings is positive but also reflects limited external financing. Liquidity appears adequate for current scale but could be strained by unexpected expenses or delayed customer payments.

4. Monitoring Points:

• Watch for continued declines in net current assets and shareholders’ funds in future filings.
• Monitor director’s ability to inject additional capital if needed, given sole control.
• Keep track of payment patterns and receivables turnover to detect cash flow stress.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory risk.
• Assess business growth or contract wins to validate financial trajectory.