AMG SPEED TRANS LTD

Executive Summary

AMG SPEED TRANS LTD is a small, newly incorporated freight transport company with a very modest financial base and dependence on director loans for liquidity. While the company shows positive net assets and working capital, the scale and cash flow generation are minimal, warranting a cautious credit approach. Conditional approval is recommended with limited exposure and close monitoring of trading progress and liquidity metrics.

AMG SPEED TRANS LTD - Analysis Report

Company Number: 13748865

Analysis Date: 2025-07-29 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AMG SPEED TRANS LTD is a very young private limited company (incorporated 2021) operating in freight transport by road. It has no employees and minimal fixed assets, demonstrating a very small scale of operations. The latest accounts show a small positive net asset position (£1,406) and net current assets (£1,406) due to a modest cash balance (£2,536). However, the company has director loans (£2,492) classified as current liabilities, indicating reliance on shareholder funding rather than external commercial debt. The financial position is fragile with limited operational scale and no trading history beyond 3 years. Credit exposure should be limited and contingent on further financial information and monitoring of trading performance.

2. Financial Strength:

• Net Assets: £1,406 (up from £995 in prior year) showing modest but positive equity.
• Shareholders Funds: Entirely composed of called-up share capital (£100) and retained profits (£1,306).
• Current Assets: Negative (£-1,751) due to an investment figure recorded as a negative amount (£-4,287), which appears to be an accounting or classification anomaly—possibly a contra entry for director loans or similar. Cash is positive at £2,536.
• Current Liabilities: £3,157 mainly comprises director loans (£2,492), VAT (£321), and taxes/social security (£344).
  The balance sheet is very thin and dependent on director funding. There are no tangible fixed assets or employees, limiting business scale and collateral value.

3. Cash Flow Assessment:

• Cash on hand is positive but small (£2,536), indicating limited liquidity buffer.
• The company relies on director loans for short-term financing which may not be sustainable or indicative of strong independent cash flow generation.
• No employees and minimal reported trading suggest limited operational cash flow at this stage.
• Working capital is positive (£1,406), but the negative current assets figure and reliance on director loans highlight liquidity risk if funding support ceases.

4. Monitoring Points:

• Monitor trading revenues and profitability progression to assess ability to generate independent cash flow.
• Watch director loan balances and timing of repayments or conversion to equity.
• Review upcoming accounts filings for improved clarity on investments and current asset classification.
• Keep track of VAT and tax liabilities to ensure compliance and avoid enforcement action.
• Observe any changes in business scale, such as hiring employees or acquiring assets, which would affect credit risk profile.