Company Number: 12817239

Analysis Date: 2025-07-20 11:51 UTC

1. Credit Opinion: DECLINE
   A&MO Thompson Ltd shows persistent negative net assets and shareholders’ funds over the past four years, indicating ongoing losses and erosion of capital. The company’s current liabilities consistently exceed current assets, resulting in negative working capital, which raises concerns about its ability to meet short-term obligations. The absence of profitability, combined with a small cash balance that has significantly declined from prior years, suggests limited capacity to service debt or absorb financial shocks. Without evidence of a clear turnaround plan or external financial support, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Shareholders’ funds are negative (£-991) as of 2024, improving slightly from a deep deficit (£-15,932) in 2023, but still well below zero. Tangible fixed assets are minimal (£303) relative to liabilities, reflecting a low asset base. The company’s total current liabilities (£4,187) exceed current assets (£2,993), resulting in a net current liability position (working capital deficit of £1,194). This indicates poor liquidity and a fragile capital structure with no equity cushion.

3. Cash Flow Assessment:
   Cash at bank dropped sharply from £9,452 in 2023 to £2,963 in 2024, signaling cash depletion and potential cash flow challenges. Debtors are negligible (£30), implying limited receivables. The company’s inability to generate positive cash flow internally is suggested by the ongoing negative net current assets. The small cash reserve relative to liabilities indicates limited liquidity to cover obligations, increasing the risk of payment delays or defaults.

4. Monitoring Points:

• Continued monitoring of liquidity ratios (current ratio, quick ratio) to assess short-term payment ability.
• Tracking operating cash flow and net profit/loss trends to evaluate if financial performance improves.
• Watch for any capital injections or restructuring efforts that might improve equity and working capital.
• Keep an eye on director’s conduct and any changes in control or business model that could impact creditworthiness.