ARIES TRANSFORMATIONS LTD

Executive Summary

Aries Transformations Ltd, a recently incorporated micro-entity in management consultancy, currently shows a negative net asset position and working capital deficit, indicating high solvency and liquidity risk at this nascent stage. While compliant with filing requirements and under clear single-person control, the company’s operational sustainability is yet to be demonstrated. Close monitoring of its financial developments and cash flow management is advised for investors.

ARIES TRANSFORMATIONS LTD - Analysis Report

Company Number: 14811673

Analysis Date: 2025-07-29 13:56 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities exceeding current assets, indicating significant solvency concerns at this early stage of operations.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £5,064, reflecting that liabilities exceed assets, which is a fundamental solvency red flag.
• Working Capital Deficit: Current liabilities (£5,401) substantially exceed current assets (£337), raising liquidity concerns and potential cash flow difficulties meeting short-term obligations.
• Very Early Stage Company: Incorporated less than one year ago, with minimal financial history and only one employee (the director), the company’s operational sustainability and revenue generation remain unproven.

3. Positive Indicators:

• Compliance: The company is current with statutory filings including accounts and confirmation statements, signaling regulatory compliance and governance diligence.
• Clear Ownership and Control: Single director and sole shareholder Mrs. Hannah Claire Casey provides clarity on control and responsibility, reducing complexity in decision-making.
• Micro-Entity Status: The company benefits from simplified accounting and filing requirements, easing administrative burdens at this startup phase.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities to understand their composition and maturity—whether these are trade payables, loans, or director-related advances.
• Review the business plan and cash flow forecasts to assess how the company intends to improve liquidity and move to positive net assets.
• Examine any agreements or arrangements with related parties, particularly given the sole director/shareholder structure, to identify potential financial support or obligations.
• Monitor future filings for revenue recognition, profitability trends, and any changes in capital structure or external financing.