APLUSTUFF LTD

Executive Summary

Aplustuff Ltd demonstrates significant financial distress, with persistent negative net assets and reliance on director loans to fund operations. While it maintains good regulatory compliance and shows some operational activity, its solvency and liquidity position pose high risk to investors. Further investigation into the director loans and business viability is essential before considering investment.

APLUSTUFF LTD - Analysis Report

Company Number: 13276406

Analysis Date: 2025-07-19 12:40 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and net current liabilities over multiple years, indicating solvency concerns. Its creditors are primarily director loans, which may not be sustainable long-term. Cash balances are low relative to liabilities, highlighting liquidity risk.

2. Key Concerns:

• Solvency Risk: Net liabilities around £10,000 consistently over the past three years, reflecting a lack of equity and potential inability to meet obligations without further director support.
• Liquidity Concerns: Current liabilities (£21,868) exceed current assets (£11,842) by a significant margin, indicating working capital deficits and potential cash flow difficulties.
• Operational Stability: The company has only one employee (the director) and relies heavily on director loans, raising questions about its operational scalability and financial independence.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are filed on time, showing regulatory compliance and governance discipline.
• Stable Shareholder Control: The sole director and 75-100% shareholder appears engaged and committed, which could facilitate decision-making and potential recapitalization.
• Growth in Current Assets: Increase in inventories and trade debtors suggests operational activity and some business growth over the last year.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: Are they repayable on demand? Are there formal agreements?
• Review cash flow forecasts and business plans to assess the company’s ability to improve liquidity and profitability.
• Clarify the company's revenue streams and client base tied to the retail SIC codes for mail order and internet sales.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations exist.
• Assess the experience and financial capacity of the sole director to support the company long term.