Company Number: 12537227

Analysis Date: 2025-07-20 17:37 UTC

1. Risk Rating: MEDIUM
   While A&S Lifts Ltd is currently active and compliant with filing deadlines, its financial position shows signs of weakening solvency and liquidity, warranting a cautious assessment.

2. Key Concerns:

• Deteriorating Net Assets: Net assets have nearly halved from £23,460 in 2023 to £11,349 in 2024, indicating a substantial erosion of equity and potential solvency risk if the trend continues.
• Tight Liquidity Position: Net current assets plunged from £8,745 in 2023 to just £1,417 in 2024, reflecting very limited short-term liquidity buffer to meet immediate obligations. Current liabilities have increased sharply to £104,844 from £23,377, raising concerns over working capital management.
• Significant Increase in Current Liabilities: The large jump in current liabilities without a proportional increase in current assets may imply rising operational or creditor pressure, which could stress cash flows and payment ability.

3. Positive Indicators:

• Timely Compliance: The company is up to date with accounts and confirmation statement filings, showing good governance and regulatory adherence.
• Stable Workforce: The employee count remains steady at around 3, indicating operational continuity and no recent downsizing.
• Micro-Entity Status: Being a micro-entity simplifies reporting requirements and may reduce administrative burden, allowing management to focus on operational matters.

4. Due Diligence Notes:

• Examine Detailed Cash Flow: Investigate the underlying causes of the sharp increase in current liabilities and whether these represent supplier debts, accrued expenses, or short-term borrowings.
• Profit and Loss Trends: Review P&L statements to understand profitability, margin trends, and whether losses are driving equity decline.
• Contract and Customer Stability: Assess the sustainability of contracts and revenue streams given the company's industry (construction installation and machinery repair) which can be cyclical.
• Director Backgrounds: Although no red flags are apparent from director data, confirm there are no disqualifications or adverse conduct records.
• Contingent Liabilities: Check for any off-balance sheet liabilities or pending litigation that could impact financial health.