AMH PROPERTY ORGANISATION LTD

Executive Summary

AMH PROPERTY ORGANISATION LTD is currently in a financially fragile state, characterized by negative working capital and net liabilities despite significant property assets. Immediate focus on liquidity improvement, debt restructuring, and potential capital injection is critical to stabilize and restore the company’s financial health.

AMH PROPERTY ORGANISATION LTD - Analysis Report

Company Number: 13137331

Analysis Date: 2025-07-29 21:07 UTC

Financial Health Assessment of AMH PROPERTY ORGANISATION LTD as at 31 January 2024

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1. Financial Health Score: D

Explanation: The company demonstrates symptoms of financial distress primarily due to persistent negative net current assets and net liabilities. While it holds significant fixed assets, the current liabilities far exceed current assets, indicating liquidity challenges. The negative shareholders’ funds and worsening net liabilities suggest ongoing financial strain.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Share Capital	100	Minimal equity base, typical for a small private company.
Fixed Assets	181,465	Healthy long-term asset base, mainly property-related (SIC 68209).
Current Assets	4,507	Very low relative to liabilities, weak short-term asset base.
Cash	3,880	Some cash cushion but insufficient against short-term debts.
Current Liabilities	85,146	Large short-term debts creating liquidity pressure.
Net Current Assets	-80,639	Negative working capital, a clear symptom of cash flow distress.
Creditors due after 1 year	123,537	Significant long-term debt burden.
Net Assets (Total Equity)	-22,711	Negative equity indicates insolvency on a balance sheet basis.
Shareholders Funds	-22,711	Reflects accumulated losses exceeding equity capital.
Profit & Loss Account	-22,811	Accumulated losses, no retained profits.

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3. Diagnosis: What the Financial Data Reveals About Business Health

AMH PROPERTY ORGANISATION LTD is showing clear symptoms of financial strain. Despite holding considerable tangible fixed assets (likely property), the company is experiencing liquidity problems, as evidenced by a heavily negative net current asset position (working capital deficit of £80,639). This means the company’s short-term debts significantly exceed its liquid assets and receivables.

The negative net assets and shareholders’ funds reflect accumulated losses eroding the equity base, which is a sign of financial distress. The company’s long-term liabilities (£123,537) further compound its balance sheet weakness, potentially linked to loans or mortgages secured against its property assets.

The increase in fixed assets from £33,881 to £181,465 during the year suggests capital investment or acquisition of property; however, this has increased debt levels substantially, worsening liquidity and solvency metrics.

The company currently employs no staff and has minimal share capital, indicating a small operation possibly managed by the director(s) without broader operational scale.

Overall, the financial health is fragile, with symptoms akin to a patient with "poor circulation" — the company’s cash flow is restricted, and it risks inability to meet short-term obligations without restructuring or additional capital infusion.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management: Seek to enhance cash flow by negotiating longer payment terms with creditors or accelerating debtor collections. Consider short-term financing or overdraft facilities to ease working capital pressure.

• Debt Restructuring: Engage with lenders to explore restructuring or refinancing existing debts, especially the significant long-term liabilities, to reduce interest burden and improve solvency.

• Asset Utilisation Review: Assess fixed assets for potential sale or revaluation to release cash if possible without harming core business operations.

• Capital Injection: Consider raising additional equity to strengthen the balance sheet and restore positive shareholders’ funds, improving confidence among creditors and suppliers.

• Cost Control: Maintain low operating costs given no employees currently, but plan for sustainable operational scaling only when financial position stabilizes.

• Regular Financial Monitoring: Implement monthly cash flow forecasting and tight budget controls to catch early symptoms of distress and respond proactively.

• Professional Advice: Consult with insolvency practitioners or financial advisors to plan for possible turnaround or protection measures if liquidity worsens.

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Summary

AMH PROPERTY ORGANISATION LTD shows a concerning financial profile with negative working capital and net liabilities, indicating liquidity and solvency challenges. While it owns significant property assets, the current financial structure resembles a patient with impaired circulation—stable in the long-term asset base but struggling to meet immediate obligations. Prompt action on cash flow, debt restructuring, and capital strengthening is essential to improve financial wellness and avoid further deterioration.