AUTO EXPORT PLUS LTD

Executive Summary

AUTO EXPORT PLUS LTD is an early-stage micro private limited company with immediate solvency and liquidity concerns, evidenced by negative net assets and current liabilities exceeding current assets. While compliance with statutory filings and a clear ownership structure provide some operational clarity, the financial position signals elevated risk. Further due diligence is necessary to understand short-term obligations, cash flow prospects, and management strategies to stabilize the business.

AUTO EXPORT PLUS LTD - Analysis Report

Company Number: 15035236

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a negative net asset position (£-1,065) at its first reporting date, with current liabilities exceeding current assets. This indicates an immediate solvency concern and potential liquidity risk, especially for a micro-entity in its initial year of operation.

2. Key Concerns:

   • Negative Net Assets: Total liabilities exceed assets, yielding negative shareholders' funds, a clear solvency red flag.
   • Liquidity Deficiency: Current liabilities (£6,468) surpass current assets (£5,403), suggesting inability to cover short-term obligations from liquid resources.
   • Start-up Phase Risks: Incorporated in July 2023, the company has only one reported employee and limited financial history, increasing operational uncertainty.

3. Positive Indicators:

   • Compliance with Filings: Accounts and confirmation statements are current and not overdue, demonstrating adherence to statutory requirements.
   • Clear Ownership Structure: A single Person with Significant Control (PSC) holds 75-100% shares, allowing for straightforward governance and decision-making.
   • Industry Focus: Engaged in retail trade of motor vehicle parts and accessories, a defined market niche with potential demand if well managed.

4. Due Diligence Notes:

   • Investigate the nature of current liabilities to assess whether they are trade payables, short-term loans, or other obligations and the payment terms.
   • Request management accounts or cash flow forecasts to evaluate liquidity and working capital management going forward.
   • Review directors’ plans for capital injection or operational scaling to address the negative net asset position.
   • Confirm the accuracy of financial records given the negative net assets reported and ensure no errors or omissions.
   • Assess director backgrounds and any potential conflicts of interest given the tight control by one individual.