ARMADILLO CUSTOMS LTD

Executive Summary

Armadillo Customs Ltd exhibits significant financial distress characterized by escalating net liabilities and working capital deficits, posing high solvency and liquidity risks. While statutory compliance and consistent directorship provide some operational stability, the company’s financial position raises material concerns regarding its ability to meet obligations and sustain operations without corrective action. Further detailed financial and operational due diligence is recommended to clarify the underlying causes and prospects for recovery.

ARMADILLO CUSTOMS LTD - Analysis Report

Company Number: 12581804

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent and increasing net liabilities and negative net current assets over recent years, indicating significant solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets deteriorated from a modest positive £393 in 2020 to a negative £44,072 in 2024, reflecting accumulated losses eroding equity.
• Working Capital Deficit: Current liabilities substantially exceed current assets (£72,297 vs. £125,738 in 2024), resulting in a large net current liability position (-£53,441), which raises red flags on the ability to meet short-term obligations.
• Increasing Creditors: The sharp rise in creditors due within one year from £37,587 in 2021 to £125,738 in 2024 suggests escalating payables or borrowing, potentially straining liquidity and supplier relationships.

3. Positive Indicators:

• Active Trading Status and Compliance: The company is active, with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Experienced Single Director and PSC: Mr David Richard Bide has been a consistent director and controlling shareholder since incorporation, which may provide operational continuity and commitment.
• Small Employee Base with Controlled Costs: The company employs an average of 3 people, which may help limit overheads in a niche manufacturing and sales sector.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess the risk of default or restructuring needs.
• Review cash flow statements (if available) to confirm liquidity trends and operating cash generation or burn.
• Understand reasons behind the significant increase in creditors and whether these are trade payables, loans, or other financial obligations.
• Assess the company’s business model sustainability and market position within the motorcycle manufacture and sales sector given persistent losses.
• Confirm no contingent liabilities or regulatory issues unreported in the accounts.
• Verify the absence of director misconduct or disqualification records for Mr Bide, given sole control.