Company Number: 13441760

Analysis Date: 2025-07-20 16:25 UTC

1. Credit Opinion: DECLINE
   Amgrace EV Limited’s financial position is weak with persistent net current liabilities exceeding £7,000 over the last two years and negative shareholders’ funds of the same magnitude. The company is a micro-entity with minimal fixed assets and current assets of just £1,368 against current liabilities of £8,548 as of June 2024, indicating poor liquidity and negative working capital. There is no evidence of profitability or cash flow generation, and the company employs no staff, suggesting limited operational scale. Given the negative equity position since inception and no apparent improvement, the risk of non-payment or default on credit facilities is high. The company’s very recent incorporation (2021) and limited financial history also reduce confidence in its creditworthiness.

2. Financial Strength:
   The balance sheet shows a consistent negative net asset position, with shareholders’ funds at -£7,180 in 2024, unchanged from prior years, reflecting accumulated losses or possibly start-up investment deficits. Current liabilities substantially exceed current assets, indicating a liquidity shortfall. The absence of fixed assets or other long-term investments limits collateral value. The small share capital (£100) provides negligible financial buffer. Overall, the financial strength is weak, with negative net worth and poor solvency indicators.

3. Cash Flow Assessment:
   Current assets are low and mostly likely comprise minimal cash and receivables, while current liabilities are significantly higher, resulting in a working capital deficit of over £7,000. The company’s accounts do not report any employees or profit reserves, suggesting limited operational activity and cash inflows. The negative working capital and absence of tangible assets or reserves imply constrained liquidity and potential reliance on external funding or shareholder support to meet short-term obligations.

4. Monitoring Points:

• Watch for any improvement in net current assets and positive cash flow generation.
• Monitor changes in shareholder equity and any capital injections.
• Track any new filings indicating operational scale-up or profitability.
• Observe director and PSC changes for signs of management stability or strategic shifts.
• Review upcoming financial statements for evidence of debt servicing capability or turnaround.