ARMIYA SERVICES LTD

Executive Summary

ARMIYA SERVICES LTD exhibits significant solvency and liquidity concerns highlighted by negative net assets and high long-term liabilities relative to its asset base. While compliance with filing deadlines is maintained and operational management is stable, the financial position suggests elevated risk that warrants careful scrutiny of creditor terms and cash flow. Further investigation into the company’s business viability and asset quality is recommended before considering investment.

ARMIYA SERVICES LTD - Analysis Report

Company Number: SC745347

Analysis Date: 2025-07-19 12:33 UTC

1. Risk Rating: HIGH
   Justification: The company shows a negative net asset position (£-3,208) as at 30 September 2024, with significant long-term creditors exceeding total assets. The current assets are minimal (£1,197) compared to liabilities due after more than one year (£84,506), indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative Equity: The company’s net assets have deteriorated from a positive £1 in 2023 to negative £3,208 in 2024, suggesting erosion of capital and financial distress.
• High Long-Term Liabilities: Creditors due after more than one year stand at £84,506, which surpasses fixed assets and current assets combined, raising concerns about the company’s ability to meet obligations.
• Minimal Current Assets and Working Capital: Current assets are very low (£1,197) with no current liabilities reported, but the overall liquidity appears constrained, indicating potential cash flow difficulties.

3. Positive Indicators:

• Up-to-date Filing: Accounts and confirmation statement filings are current with no overdue status, demonstrating compliance with statutory requirements.
• Consistent Management: Both directors have been in place since incorporation with relevant management experience, providing operational continuity.
• Micro-Entity Status: This reduces filing complexity and may indicate a small operational scale, which could limit financial exposure.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£84,506) to assess repayment schedules and potential refinancing risks.
• Review cash flow statements and bank balances (not available here) to evaluate short-term liquidity and operational cash generation.
• Examine underlying business model sustainability and revenue streams given low current assets and negative net equity.
• Confirm whether the fixed assets (£80,100) are tangible and realizable or possibly overstated, impacting asset cover for liabilities.
• Assess director involvement and any related party transactions given the controlling interest of one director.