ANDA HYDRAULICS CO., LTD

Executive Summary

Anda Hydraulics Co., Ltd exhibits significant solvency and liquidity concerns as reflected in consecutive years of negative net assets and working capital deficits. While compliance with filing deadlines and an established industrial focus are positive, the company’s small scale and financial weakness pose high investment risk. Further detailed financial and operational due diligence is essential before considering investment.

ANDA HYDRAULICS CO., LTD - Analysis Report

Company Number: 14680700

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: HIGH
   Anda Hydraulics Co., Ltd shows persistent negative net assets and net current liabilities over three consecutive financial years, indicating solvency issues. The company is a micro-entity with minimal financial buffer, suggesting elevated financial risk.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficits: The company has net liabilities of £1,617 as of FY 2025 and negative net current assets of £2,617, implying it cannot currently cover short-term obligations from current assets.
• Minimal Operational Scale: With only 1 employee on average and micro-entity accounting, the business scale is very small, possibly limiting operational sustainability and growth prospects.
• Concentration of Control: The sole director and 75-100% shareholder is the same individual, which may raise governance and succession risk concerns, especially given the company’s financial difficulties.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed accounts and confirmation statements on time, indicating regulatory compliance and good administrative governance.
• Clear Industry Focus: The company operates in fluid power equipment and steel pipe manufacturing, established sectors with potential niche opportunities if financial issues are resolved.
• No Signs of Insolvency Proceedings: The company status is active, with no liquidation or administration noted, implying ongoing operations.

4. Due Diligence Notes:

• Investigate the nature and cause of recurring net liabilities and negative working capital—are these due to start-up phase losses, undercapitalization, or operational inefficiencies?
• Assess cash flow statements and bank facilities (not provided) to evaluate liquidity beyond balance sheet snapshots.
• Review contracts, customer base, and supplier terms to understand operational viability and prospects for turning around financial health.
• Verify the director’s plans for recapitalization or restructuring given the persistent net liabilities.
• Confirm no related party transactions or loans that may affect financial position or introduce conflicts of interest.