Company Number: 14244032

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: MEDIUM
   Justification: ASG Mortgages Ltd shows ongoing negative net current assets (working capital deficits) over the last two years, indicating liquidity pressure. However, the company remains solvent on a net asset basis with positive shareholders’ funds and no overdue filings, mitigating immediate solvency risk.

2. Key Concerns:

• Persistently negative net current assets: Current liabilities significantly exceed current assets (£61k vs. £7.5k in 2024), which raises concerns about short-term liquidity and ability to meet obligations as they fall due.
• Declining fixed assets and current assets: Fixed assets decreased slightly from £90k to £80k, and current assets dropped substantially, signaling possible asset disposals or reduced cash balances.
• Limited scale and employee base: With only 2 employees and micro-entity filing status, the company’s operational scale is small, which may impact sustainability and scalability in the competitive mortgage finance sector.

3. Positive Indicators:

• Positive net assets and shareholders’ funds, improving from £16k to nearly £24k, indicate that the company’s overall balance sheet remains solvent.
• No overdue statutory filings or overdue accounts, showing good regulatory compliance and governance discipline to date.
• Directors appear engaged and have signed off on accounts, with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate cash flow forecasts and bank statements to assess how the company is managing its working capital deficit and funding short-term obligations.
• Review the nature of fixed assets and any recent disposals or impairments impacting asset values.
• Examine revenue trends and profitability to understand operational sustainability, particularly given the small employee base and competitive industry.
• Confirm no contingent liabilities or off-balance sheet obligations that may exacerbate liquidity risks.
• Scrutinize the director background checks for any undisclosed governance or compliance issues.