AUTO SECURED LTD

Executive Summary

Auto Secured Ltd has moved from a position of negative net assets to a modestly positive financial standing within a few years. However, the company's very small scale, historical financial difficulties, and limited disclosure under micro-entity reporting warrant a medium risk rating. Prospective investors should seek further operational and financial details to confirm sustainability of recent improvements before committing capital.

AUTO SECURED LTD - Analysis Report

Company Number: 13476425

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: MEDIUM
   While the company has demonstrated a significant turnaround from negative net assets of £-5,112 in 2023 to positive net assets of £1,591 in 2024, its overall scale remains very small and the financial history shows prior periods of net current liabilities and net losses. The current positive net asset position reduces immediate solvency concerns but limited financial data and minimal operational scale advise caution.

2. Key Concerns:

• Historical Losses and Negative Equity: The company had negative net assets and net current liabilities in the two prior years (2022 and 2023), indicating prior financial distress that may impact operational stability.
• Minimal Scale and Micro Entity Status: The company operates as a micro-entity with a single employee (the director), suggesting limited operational capacity and potentially thin margins or revenue base.
• Limited Financial Transparency: The accounts are unaudited and prepared under micro-entity provisions, limiting insight into detailed financial performance and risks.

3. Positive Indicators:

• Recent Improvement in Net Assets and Working Capital: The latest financial year shows positive net current assets (£2,011) and net assets (£1,591), indicating improved liquidity and solvency.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements noted, indicating good regulatory compliance.
• Stable Director and Ownership Structure: Two directors/shareholders with equal control, no signs of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the cause of previous years' losses and whether the recent turnaround is sustainable or due to one-off events.
• Assess the company’s current revenue streams, profitability, and cash flow forecasts given the micro scale and limited employee base.
• Confirm no contingent liabilities or off-balance-sheet obligations that could impact solvency.
• Review contracts and customer base supporting the business model of selling and installing car security products nationwide.
• Evaluate director experience and capacity to grow the business given current operational scale.