AMR DEVELOPMENT LIMITED

Executive Summary

AMR DEVELOPMENT LIMITED is a newly incorporated micro-entity exhibiting early-stage financial challenges, notably negative working capital and unpaid share capital. While statutory compliance and governance structures appear sound, the limited operating history and liquidity shortfall elevate solvency risks. Detailed cash flow and capital receipt verification are recommended to better assess financial stability.

AMR DEVELOPMENT LIMITED - Analysis Report

Company Number: 15182556

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH

Justification: The company’s financial data reveals negative net current assets (working capital) of £10,024 despite reporting positive net assets of £19,005. The negative working capital indicates a liquidity shortfall, raising concerns about the company’s ability to meet short-term obligations as they fall due. Additionally, the company is very young (incorporated in late 2023) and operates as a micro-entity with minimal financial history, which limits visibility into operational stability.

2. Key Concerns:

• Negative net current assets (current liabilities exceed current assets by £10,024), signaling potential liquidity stress.
• The called-up share capital not paid of £29,029 suggests that capital has been subscribed but not yet received in cash, which may impair available funds.
• Very limited operating history (less than one full financial year) and only 2 employees, making it difficult to assess business sustainability and cash flow generation.

3. Positive Indicators:

• The company filed accounts and confirmation statements on time, indicating compliance with statutory regulatory requirements.
• Shareholders’ funds of £19,005 show some equity buffer, supported by a single controlling shareholder with 75-100% ownership and full control over directorship.
• The company has a designated company secretary and director both appointed at incorporation, demonstrating formal governance structure in place.

4. Due Diligence Notes:

• Investigate the nature and timing of the called-up share capital not paid: is this expected to be received imminently or at risk of non-payment?
• Review cash flow forecasts and bank statements to assess the company’s ability to resolve the current liquidity deficit.
• Understand the business model and revenue pipeline to evaluate operational sustainability given the minimal employee base and early stage.
• Confirm no contingent liabilities or off-balance sheet obligations that could further impair solvency.
• Verify that the director and secretary have no adverse regulatory or disqualification records.