Company Number: 12796186

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: DECLINE
   AAR Property Services Ltd shows significant financial distress as at the last accounting date (31 July 2023). The company has net liabilities of £91,438 and negative shareholders’ funds, indicating insolvency on a balance sheet basis. Its current assets are negligible (£100) against current liabilities also negligible, but the main concern is the large long-term creditors (£819,038) exceeding the fixed assets value (£727,500). This capital structure suggests an inability to meet debt obligations without asset sales or refinancing. The company’s micro-entity status and lack of profitability evidence limit confidence in its capacity to service debt or absorb financial shocks. The recent change in control and director may suggest operational restructuring, but no financial turnaround is evident yet.

2. Financial Strength:
   The balance sheet shows fixed assets of £727,500, which appear to be property-related given the SIC code (68100 - buying and selling own real estate). Current assets are minimal (£100), providing no liquidity buffer. Current liabilities are minimal, but the company holds significant long-term liabilities (£819,038), exceeding total assets less current liabilities (£727,600). Consequently, net assets and shareholders’ funds are negative by £91,438, reflecting accumulated losses or financing deficits. This negative equity position signals weak financial strength and a high risk of insolvency without additional capital or debt restructuring.

3. Cash Flow Assessment:
   No direct cash flow statement is provided, but working capital is effectively zero, and current assets are extremely low. This indicates very limited liquidity and cash reserves to cover short-term obligations or operational expenses. The company’s small scale (micro entity, 1 employee) limits operational complexity but also revenue base. The imbalance between fixed assets and long-term debt suggests cash flow is likely tied up servicing debt or repaying creditors, with little free cash available. Without improvement in liquidity or access to external funding, ongoing operation and debt servicing will be at risk.

4. Monitoring Points:

• Liquidity and working capital trends in next accounts: any improvement in cash or current assets is critical.
• Changes in long-term creditor balances and repayment schedules.
• Profitability or cash flow from operations if disclosed in future filings.
• Impact of new director and 75-100% share ownership by Xxxxxx Xxxxxxxxname shown to subscribers since May 2024 on company strategy and financial restructuring.
• Filing of next accounts and confirmation statements on time to assess ongoing compliance and financial updates.
• Any related party transactions or asset disposals to address negative net assets.