EXOS ASSET MANAGEMENT LIMITED

Executive Summary

Exos Asset Management Limited displays high financial risk characterized by negative net assets and significant working capital deficits, raising concerns about solvency and liquidity. Although operational profitability is reported, the dividend payments amidst losses and the minimal cash reserves warrant further scrutiny to assess ongoing viability and governance. The company remains compliant with filing requirements but requires detailed investigation into its financial management and operational model to fully evaluate risk to investors.

EXOS ASSET MANAGEMENT LIMITED - Analysis Report

Company Number: 13555252

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns driven by substantial net current liabilities and negative shareholders' funds. The lack of employees and negative equity raise questions about operational sustainability.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £38,248 as of 31 July 2024, indicating insolvency on a balance sheet basis.
• Liquidity Deficit: Current liabilities (£45,879) far exceed current assets (£7,631), resulting in a working capital deficit of £38,248, which may impair the company's ability to meet short-term obligations.
• Dividend Payments Despite Losses: The company declared dividends of £129,648 in the reporting period despite a reported retained earnings deficit and negative equity, potentially signaling governance or cash flow management issues.

3. Positive Indicators:

• Profit Generation: The company reported a gross profit of £191,383 and an operating profit of £121,868, demonstrating operational profitability before taxation and administrative expenses.
• Timely Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue submissions, indicating regulatory compliance.
• Strong Control Structure: A single individual, Mr. Paul Raymond Reid, holds 75-100% ownership and voting control, which can facilitate decisive corporate governance.

4. Due Diligence Notes:

• Investigate the nature and timing of dividend payments that exceed profits and are paid despite negative equity, to assess compliance with company law and potential creditor impact.
• Clarify the composition of current liabilities, especially the £30,469 tax and social security creditor balance, to understand obligations and any potential tax disputes or liabilities.
• Review cash flow statements or management accounts to determine if cash generation supports ongoing operations given the minimal cash balance (£289).
• Confirm the company's operational model given no employees were reported, and assess sustainability and reliance on director or contractor arrangements.
• Assess future capital injection plans or creditor arrangements aimed at rectifying the negative net asset position.