AMICUS FINANCE LIMITED

Risk Rating: HIGH The company exhibits severe solvency and liquidity constraints, characterized by negative net assets, a substantial accumulated deficit, and near-zero cash reserves. Although the company remains operational based on a parent entity's expressed willingness to provide financial support, the standalone financial position is fundamentally impaired, and short-term obligations significantly exceed liquid assets.

Key Concerns: - Solvency and Going Concern Dependency: The company has negative net assets of £407,778 and an accumulated profit and loss deficit of £30.47 million as of December 2023. The company is technically insolvent on a standalone basis and only continues as a going concern due to the stated support of its parent, Omni Partners Group. Any withdrawal of this support would likely trigger immediate insolvency. - Severe Liquidity Deterioration: Cash at bank has depleted by 90%, falling from £171,239 in 2022 to just £17,665 in 2023. Current liabilities (£12.96 million) now exceed current assets (£12.55 million), resulting in negative working capital. The company faces a massive near-term obligation in the form of "Other loans" amounting to £12.34 million falling due within one year, against which it holds questionable liquidity. - Regulatory Filing Anomaly: The accounts are categorized as "Micro" entity filings. However, under the Companies Act 2006, a micro-entity must not exceed a balance sheet total of £316,000. With total assets and liabilities both exceeding £12.5 million, the company exceeds this threshold by a factor of nearly 40. Filing as a micro-entity while holding these balance sheet sizes raises significant regulatory compliance concerns and severely restricts the transparency of the financial statements available to creditors and investors.

Positive Indicators: - Parental Backstop: The director's report explicitly notes that Omni Partners Group has indicated its willingness to support the business. Given that the bulk of the liabilities and assets appear to be inter-company or intra-group in nature, the systemic risk may be mitigated if the broader group remains stable and solvent. - Regulatory Timeliness: Despite the severity of the financial position, the company's statutory filings (accounts and confirmation statements) are up to date and not overdue, indicating administrative compliance at the Companies House level. - Capital Structure Buffer: While the P&L reserve is deeply negative, the share premium account retains a substantial credit balance of £29.62 million. This indicates that significant capital was historically injected into the company, which legally remains available to absorb losses, even though the overall equity position is negative.

Due Diligence Notes: - Verify Micro-Entity Eligibility: Investigate why the company is filing under the micro-entity regime. Determine if this is a data classification error or a deliberate filing choice, which could draw scrutiny from the Financial Conduct Authority (FCA) or Companies House, especially for a former PLC operating in the mortgage finance sector. - Inter-Company/Associate Debtor Quality: Examine the £12.47 million "Amounts owed by joint ventures and associated undertakings." This single asset class represents over 99% of current assets. The recoverability of this balance is critical to the company's liquidity and must be assessed against the financial health of those specific ventures. - Nature of the £12.34m "Other Loans": Clarify the terms, counterparties, and security of the £12.34 million in other loans. Given the company's lack of operational cash flow and minimal staff, these loans appear to be financing the associated undertakings. Understanding if these loans are callable on demand is vital. - Corporate Structure & Re-registration: Investigate the 2021 re-registration from a Public Limited Company (PLC) to a Private Limited Company. Understand the strategic reasons for this demotion, which often signals a retreat from raising public capital or a restructuring of the group's capital stack.