ATLAS MULTI SERVICES LTD

Executive Summary

ATLAS MULTI SERVICES LTD exhibits critical financial distress characterized by negative working capital and equity shortly after incorporation. Immediate measures including capital injection, cash flow management, and cost control are essential to restore financial health and ensure sustainable operations.

ATLAS MULTI SERVICES LTD - Analysis Report

Company Number: 14554603

Analysis Date: 2025-07-19 13:05 UTC

Financial Health Assessment for ATLAS MULTI SERVICES LTD

---

1. Financial Health Score: F

Explanation:
The company shows a critical financial imbalance with net current liabilities exceeding current assets by £1,689. This negative working capital indicates an inability to meet short-term obligations, a severe symptom of financial distress for any business. Given the company's micro-entity status and recent incorporation, this points to a fragile financial foundation.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	265	Extremely low liquidity; the company holds minimal short-term assets such as cash or receivables.
Current Liabilities	1,954	Debts or obligations due within one year; significantly higher than current assets.
Net Current Assets (Working Capital)	-1,689	Negative working capital; a key red flag indicating potential cash flow problems.
Total Assets less Current Liabilities	-1,689	Total net assets are negative, showing liabilities exceed assets; a sign of insolvency risk.
Shareholders’ Funds (Equity)	-1,689	Negative equity suggests accumulated losses or undercapitalisation since inception.
Employee Count	1	Very small operation, consistent with micro-entity classification.

Interpretation:

• Healthy cash flow is absent; the company’s current liabilities significantly outstrip its current assets, indicating a symptom of distress termed "liquidity crunch."
• Negative net assets suggest the business does not currently have sufficient value to cover its liabilities, akin to a patient with dangerously low vital signs.
• Given the company’s recent incorporation (Dec 2022), it is possible that initial start-up losses or delayed revenue are causing this condition.

---

3. Diagnosis

The financial data reveals that ATLAS MULTI SERVICES LTD is in a precarious financial state. The negative working capital and negative equity are classic symptoms of financial stress, implying the company may struggle to pay its short-term debts as they fall due. This condition often arises in early-stage businesses undergoing initial losses or liquidity challenges but is unsustainable long-term without corrective action.

The company's limited assets and high current liabilities may stem from start-up expenses, delayed cash inflows, or insufficient capital injection. The single employee and micro-entity classification suggest a very small-scale operation, possibly without diversified revenue streams or financial buffers.

Overall, the financial "patient" is currently in a critical condition, requiring immediate intervention to stabilize liquidity and restore solvency.

---

4. Recommendations

To improve the financial wellness and avoid further deterioration, the company should consider the following steps:

• Inject Additional Capital: The shareholder (Mr Abdelhai Houanti) should consider providing more equity or loans to improve liquidity and reduce negative equity. This acts like a transfusion to restore financial vitality.
• Improve Cash Flow Management: Tighten control over receivables and payables to ensure timely collections and negotiate extended payment terms with suppliers to ease short-term cash flow pressures.
• Cost Control: Review operational expenses to minimize outflows. Given the single-employee model, ensure costs align strictly with revenue generation capacity.
• Business Model Review: Evaluate the current business activities (food services and passenger transport) for profitability and scalability. Diversifying or focusing on higher-margin services may improve financial stability.
• Seek Professional Advice: Early engagement with financial advisors or accountants can help devise a restructuring plan and monitor cash flow more effectively.
• Monitor Financial Health Regularly: Establish monthly financial reviews to detect symptoms early and apply corrective measures promptly.

---