CMS AR SOLUTIONS LIMITED

Executive Summary

CMS AR SOLUTIONS LIMITED’s financial position has weakened significantly, with a substantial net liability and poor liquidity indicators. The company lacks operational scale and capital to support credit obligations, posing a high risk for lending. Without clear evidence of financial recovery or external support, credit approval is not recommended.

CMS AR SOLUTIONS LIMITED - Analysis Report

Company Number: 13271425

Analysis Date: 2025-07-20 17:58 UTC

1. Credit Opinion: DECLINE. CMS AR SOLUTIONS LIMITED currently shows a materially negative net asset position (£51,413 negative as of 28 February 2024), indicating insolvency on a balance sheet basis. The company has significant long-term liabilities (£48,232 falling due after one year) well in excess of current assets (£16,100). Negative working capital and recurring losses reduce confidence in the company’s ability to meet debt obligations. Absence of employees and limited fixed assets suggest minimal operational capacity. Without a clear turnaround plan or external capital injection, the risk of default on credit commitments is high.

2. Financial Strength: The balance sheet shows deteriorating financial strength over the last two years. While the company was marginally positive in net assets in 2021, it has since swung to a substantial net liability position. Current liabilities exceed current assets, resulting in negative net current assets (-£3,181). The high level of creditors due after one year creates a liquidity strain. Limited fixed assets and negligible capital base (£2 share capital) further weaken the financial structure.

3. Cash Flow Assessment: The latest accounts do not disclose cash flow statements, but the significant reduction in current assets from £60,679 (2023) to £16,100 (2024) coupled with increasing creditors indicates cash outflows exceeding inflows. Negative working capital and no employees suggest limited operational cash generation. The company’s ability to generate positive operating cash flow appears constrained, placing pressure on liquidity and short-term solvency.

4. Monitoring Points:

• Track quarterly cash flow performance and liquidity ratios.
• Monitor changes in creditor balances, especially long-term liabilities.
• Watch for any capital injections or restructuring plans to restore solvency.
• Review director appointments and any changes in management strategy.
• Keep updated on filing compliance and any late payments to suppliers or HMRC.