A L UTILITIES LIMITED

Executive Summary

A L Utilities Limited currently exhibits high financial risk characterized by persistent liquidity challenges, minimal net assets, and reliance on director loans. While compliant with filing requirements and maintaining active status, the company’s financial position raises concerns about its ability to meet obligations and sustain operations without additional funding or improved profitability. Further detailed financial and operational due diligence is recommended to fully assess its viability.

A L UTILITIES LIMITED - Analysis Report

Company Number: 12390236

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent net current liabilities, negative working capital, and minimal net assets. Shareholders’ funds are marginal and have decreased compared to earlier years. There is also a significant balance owed to directors, indicating potential reliance on director loans. These factors collectively raise concerns regarding solvency and liquidity.

2. Key Concerns:

• Liquidity and Working Capital Deficit: The company has negative net current assets (£-19,035 as of 2025) consistently over recent years, indicating insufficient short-term assets to cover current liabilities.
• Minimal Net Assets: Net assets are very low (£849 in 2025) and have shown a downward trend from £14,303 in 2022, signaling erosion of equity and weak financial buffer.
• Director Loans: A significant amount (£31,155) is owed to directors, which may reflect cash flow shortfalls and dependence on director funding rather than operational cash generation.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, demonstrating compliance with statutory requirements.
• Active Status & Incorporation Date: The company is active and relatively recently incorporated (2020), which may imply ongoing business operations and potential for growth.
• Fixed Assets Presence: Fixed assets represent a reasonable portion (£85,490), suggesting some tangible or intangible capital investment.

4. Due Diligence Notes:

• Review detailed income statements and cash flow statements (not filed publicly) to assess operational profitability and cash generation.
• Investigate the nature and terms of director loans, including repayment schedules and any guarantees or personal liabilities.
• Understand the company’s business model and client base within the SIC code 74909 to evaluate operational sustainability.
• Verify whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in micro-entity filings.
• Confirm if the decrease in net assets and persistent working capital deficits are due to operational losses or other non-recurring factors.