A.P.M. SERVICES LIMITED

1. Risk Rating: HIGH

The company exhibits balance sheet insolvency, with net liabilities of £20,011 at 30 April 2025 compared with net assets of £100 in the prior year. Current assets of £100 are insufficient to cover current creditors of £20,111, all owed to a group undertaking and due within one year. The absence of any cash balance and total dependence on related-party funding indicate critical liquidity strain and elevated solvency risk.

2. Key Concerns

1. Negative net assets / balance sheet insolvency: Shareholders’ funds moved from £100 to negative £20,111 in a single reporting period. The company’s liabilities exceed its assets, meaning it cannot meet its obligations from its own resources.
2. Severe liquidity constraint: Total assets consist solely of £100 owed by a group undertaking. There is no reported cash at bank. Current creditors of £20,111 are due within one year, also to a group undertaking, leaving the company with no operating buffer and no capacity to absorb further costs without external support.
3. Related-party dependence and disclosure inconsistencies: The entire balance sheet comprises intergroup balances. The registered office address given in the accounts (Sittingbourne, Kent) differs from the Companies House registered address (London). The stated principal activity—a holding company for future acquisitions—differs from the SIC code classification (recovery of sorted materials), creating uncertainty about the company’s actual business model.

3. Positive Indicators

• Statutory filings are current; neither the accounts nor the confirmation statement are overdue.
• The latest accounts carry an unqualified audit opinion from a registered auditor.
• The company is active and is not in liquidation, administration, or receivership.
• A corporate parent (A.P.M. Holdings Limited) holds a controlling stake, which may represent a source of continued financial support.

4. Due Diligence Notes

• Obtain the terms of the £20,111 creditor balance owed to the group undertaking, including repayment date, interest, and whether it is repayable on demand.
• Clarify the discrepancy between the Companies House registered office address and the address stated in the filed accounts.
• Reconcile the SIC code (recovery of sorted materials) with the stated principal activity (holding company for future acquisitions).
• Verify the PSC shareholding percentages, as the disclosed interests appear to exceed 100% in aggregate if taken at face value.
• Request a cash flow forecast to establish the company’s operating runway without additional funding.
• Assess the financial capacity of A.P.M. Holdings Limited to continue supporting the company.
• Confirm whether the company has commenced trading or remains a pre-revenue acquisition vehicle.