AMIERIN LIMITED

Executive Summary

AMIERIN LIMITED operates with a substantial fixed asset base but very low turnover and limited liquidity, resulting in a fragile financial position. The company is currently profitable on a small scale but carries significant long-term debt, posing risks to its financial stability. Focused efforts on enhancing cash flow, managing debt, and increasing working capital are essential to improve its financial wellness and resilience.

AMIERIN LIMITED - Analysis Report

Company Number: SC709561

Analysis Date: 2025-07-29 17:27 UTC

Certainly, let's proceed with a comprehensive financial health assessment of AMIERIN LIMITED, incorporating a diagnostic approach akin to a medical evaluation.

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1. Financial Health Score: D

Explanation:
AMIERIN LIMITED shows some signs of financial viability but presents notable warning signals such as high long-term liabilities relative to equity and very low turnover. The company’s net assets are positive but marginal, and the working capital is minimal. These symptoms suggest a fragile financial condition requiring attention to avoid distress.

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2. Key Vital Signs (Critical Metrics and Interpretation)

Metric	Value (2024)	Interpretation
Turnover	£9,000	Very low revenue, indicating a small scale of business operations or limited income generation.
Fixed Assets	£86,000	Significant investment in long-term assets, likely property given the SIC code (real estate).
Current Assets	£976	Extremely low liquid assets, indicating limited immediate cash or receivables to cover short-term obligations.
Current Liabilities	Not separately stated, but net current assets are positive (£976)	Positive net working capital, but very small in absolute terms, indicating tight short-term liquidity.
Creditors > 1 year	£80,400	Substantial long-term liabilities, likely loans or mortgages on fixed assets. This is a large debt burden relative to equity.
Net Assets (Equity)	£6,576	Positive equity but very modest compared to liabilities and fixed assets, indicating low buffer against losses.
Profit for period	£3,551	Small but positive profit, indicating potential to generate surplus from limited turnover.
Employee Count	0	No staff employed, possibly a passive investment or property holding company.

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3. Diagnosis: Financial Condition Assessment

AMIERIN LIMITED resembles a "patient" whose core asset is a significant fixed asset base (likely real estate), but whose operating cash inflows are minimal. The very low turnover coupled with the absence of employees suggests the business is primarily a holding or letting entity with limited active operations.

The presence of long-term creditors amounting to £80,400 against a net asset base of just £6,576 indicates a substantial leverage "symptom." This leverage amplifies financial risk, as servicing this debt will require consistent income or refinancing capability.

The working capital position is "stable but weak," with current assets just sufficient to cover short-term liabilities, indicating a "healthy but fragile cash flow" state.

Profitability is positive but limited, which is a "mildly encouraging sign" that expenses are controlled. However, the reliance on a single asset and the small operational scale mean the company is vulnerable to adverse market or interest rate changes.

Overall, the company is in a borderline financially stable condition but exhibits "symptoms of financial strain" due to high debt and low liquidity.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Flow Management:
  Improve the inflow of cash by increasing rental income or diversifying revenue streams. Explore opportunities for short-term rentals or additional property services to boost turnover.

• Debt Restructuring:
  Engage with creditors to negotiate longer repayment terms or reduced interest rates to alleviate the burden of long-term liabilities. Consider refinancing options to improve liquidity and reduce financial stress.

• Increase Working Capital:
  Build up current assets, particularly cash reserves, to strengthen the company’s buffer against short-term obligations and improve operational flexibility.

• Cost Control and Profit Improvement:
  Even with minimal expenses, review all charges to identify possible savings. Explore tax planning strategies to optimize the tax charge, which is significant relative to profit.

• Strategic Asset Review:
  Evaluate the fixed assets for potential revaluation or sale of underperforming assets to release capital and reduce debt.

• Governance and Monitoring:
  Implement regular financial monitoring and forecasting to detect early signs of distress and enable timely interventions.

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