BAR AMICIS LTD

Executive Summary

Bar Amicis Ltd exhibits significant solvency and liquidity challenges, with worsening negative net assets and persistent net current liabilities over recent years. While compliance with filing requirements and stable directorship are positive, the financial position raises substantial concerns about operational sustainability and the company's ability to meet obligations. Further investigation into cash flows and management strategies is recommended to assess recovery prospects.

BAR AMICIS LTD - Analysis Report

Company Number: 12799904

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities over the last three years, with worsening net asset position from -£3,371 in 2023 to -£7,054 in 2024. Net current liabilities remain significantly negative, indicating an inability to cover short-term debts with current assets, signaling solvency and liquidity risks.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders' funds suggest the company’s liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity Issues: Consistent net current liability deficits (over £5,000 in 2024) highlight cash flow constraints and potential difficulty in settling short-term creditors promptly.
• Operational Sustainability: Declining fixed assets and reduced average employee count (from 3 in 2023 to 2 in 2024) may indicate contraction or operational scaling back; combined with financial deterioration, this signals challenges in maintaining business continuity.

3. Positive Indicators:

• Current Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating no immediate regulatory compliance issues.
• Stable Directorship: Only one director listed with no records of disqualification or governance concerns, suggesting stable management oversight.
• Exemption from Audit: The company qualifies as a micro-entity and has appropriately filed unaudited accounts, consistent with its size and regulatory requirements.

4. Due Diligence Notes:

• Investigate causes of financial decline despite recent incorporation (2020), including revenue trends and profitability metrics not disclosed here.
• Review cash flow statements and creditor aging to assess immediate liquidity pressures and payment practices.
• Examine director’s plans and any external financing arrangements to understand strategies for returning to positive net assets and improving working capital.
• Confirm no hidden contingent liabilities or related party transactions that could exacerbate financial stress.