AUTO ATLAS LTD

Executive Summary

AUTO ATLAS LTD is an early-stage micro-entity with a weak financial position characterized by negative net assets and negative working capital. The company lacks financial strength and liquidity, presenting a high credit risk. Without significant improvements or additional security, credit facilities are not advisable at this time.

AUTO ATLAS LTD - Analysis Report

Company Number: 14057241

Analysis Date: 2025-07-29 16:37 UTC

1. Credit Opinion: DECLINE. AUTO ATLAS LTD is a micro-entity engaged in the sale of used cars with minimal financial scale and very weak financial position. The company reported net liabilities of £22 as of 30 April 2024, with current liabilities slightly exceeding current assets, indicating negative working capital. The absence of any significant asset base or reserves suggests limited capacity to service debt or absorb adverse shocks. Additionally, the company has been trading for only two years, showing no growth or improvement in financial health. Given these factors and the lack of financial robustness, credit exposure would be high risk without substantial additional security or guarantees.

2. Financial Strength: The balance sheet shows persistent net liabilities of £22, with current liabilities (£720) exceeding current assets (£688). The company holds no fixed assets, and the capital structure is minimal, with only £10 called-up share capital. Shareholders’ funds are negative, indicating accumulated losses or undercapitalization. The company’s micro-entity status and very small scale limit its financial flexibility. Overall, the balance sheet is weak and does not provide a cushion for creditors.

3. Cash Flow Assessment: The working capital is negative by £32, reflecting a slight shortfall in liquid assets to cover short-term obligations. With only one employee and minimal reported assets, the company’s liquidity is constrained. There is no evidence of cash reserves or other liquid investments to support cash flow. Given the lack of detailed cash flow statements, the limited net current assets and net liabilities suggest tight liquidity conditions and potential difficulty in meeting short-term liabilities or debt service requirements.

4. Monitoring Points:

• Monitor any changes in net current assets and net liabilities to identify improvements or further deterioration.
• Track the company’s turnover and profitability once available to assess operational viability.
• Review director’s actions regarding capital injection or reduction in liabilities.
• Watch for timely filing of accounts and confirmation statements as a proxy for management attention.
• Monitor any changes in ownership or director status that may impact governance and financial stewardship.