SWEDISH AAC GROUP LTD

Executive Summary

SWEDISH AAC GROUP LTD is a newly incorporated micro-entity currently exhibiting high solvency and liquidity risk reflected by negative net assets and working capital. While regulatory compliance to date is satisfactory, the lack of detailed financial data and negative equity position raise concerns about operational sustainability. Further due diligence into the company’s liabilities, revenue generation, and governance structure is recommended before considering investment.

SWEDISH AAC GROUP LTD - Analysis Report

Company Number: 15020261

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as indicated by negative net current assets and net liabilities shortly after incorporation. The absence of profit and loss details limits assessment, but the negative equity position is a strong red flag.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company shows a net liability of £21,036 within its first year, indicating that liabilities exceed assets and equity is negative.
• Negative Working Capital: Current liabilities (£30,376) exceed current assets (£18,460) by £11,916, suggesting potential cash flow difficulties to meet short-term obligations.
• Limited Financial History and Data: Incorporated in July 2023, the company only has one year of financial data, filed as micro-entity accounts with no profit and loss statement submitted, restricting analysis of operational performance and sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up-to-date with both accounts and confirmation statement filings, with no overdue returns or penalties noted.
• Clear Ownership Control: Ownership and control are clearly defined with a single significant shareholder possessing 75-100% voting rights, which may facilitate swift decision-making.
• Low Employee Headcount: With only one employee, operational scale is minimal, potentially reducing ongoing payroll and overhead commitments.

4. Due Diligence Notes:

• Investigate the Nature and Terms of Current Liabilities: Understanding whether liabilities are trade payables, loans, or other obligations is critical to assessing repayment risk.
• Request Full Profit and Loss Account and Cash Flow Statements: These are essential to evaluate operational viability, revenue generation, and cash management.
• Clarify Relationship and Roles Between PSCs: The two PSC entries appear to overlap in control; confirming actual ownership and control structure is needed for governance assessment.
• Assess Business Model and Market Position: Given the SIC codes related to vehicle rental, sales, and parts wholesale, confirm the company’s revenue sources and competitive positioning.
• Review Director Background and Conduct Records: Though no disqualifications are indicated, a standard check on the director’s track record would be prudent.