Company Number: 14193729

Analysis Date: 2025-07-29 15:04 UTC

1. Credit Opinion: DECLINE
   AMR CUT & MAKE TEXTILE LIMITED displays weak liquidity and negative working capital, with net current liabilities increasing from £-5,936 to £-7,346 over the last year. The consistently negative net current assets indicate an inability to cover short-term obligations from current assets. The company is a micro-entity with limited financial history and minimal equity (£3,618), which restricts its capacity to absorb financial shocks or fund growth. The absence of profit and loss data prevents assessment of operational profitability or cash generation. Given these factors, the company poses a high credit risk and is unlikely to service additional debt reliably at this stage.

2. Financial Strength:
   The balance sheet shows very modest fixed assets (£10,964) and limited net assets (£3,618), which have declined since last year. The increase in current liabilities (£18,882) relative to current assets (£11,536) worsens liquidity pressure. Shareholders' funds are low and have decreased, pointing to erosion of net worth. The company’s capital base is insufficient to support significant borrowing or withstand economic downturns. The financial trajectory signals weakening net asset position, which is a concern for creditor security.

3. Cash Flow Assessment:
   Negative net current assets indicate the company does not have enough liquid assets to meet short-term liabilities. Without access to profit and loss or cash flow statements, it is difficult to confirm operating cash generation, but the working capital deficit suggests liquidity strain. The company's small scale and limited asset base imply constrained working capital management and potential reliance on external funding or owner support to meet obligations.

4. Monitoring Points:

• Liquidity ratios, especially current ratio and quick ratio, to detect further deterioration or improvement in working capital.
• Net asset trend to monitor erosion or rebuilding of equity capital.
• Filing of profit and loss accounts to assess operational profitability and cash flow generation.
• Changes in short-term liabilities to identify increasing financial pressures.
• Director’s disclosures or any related party transactions that may impact financial stability.