Company Number: SC677624

Analysis Date: 2025-07-29 13:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ADRAR ALBA LTD is an active private limited company engaged in the letting and operation of its own or leased real estate. The company’s creditworthiness is constrained by significant net current liabilities and minimal liquidity, indicating tight short-term financial flexibility. However, it holds substantial fixed assets which support its overall net asset position. Given the absence of any overdue filings and no negative director conduct, the company shows responsible management practices. Approval is conditional upon monitoring liquidity improvements and ensuring timely servicing of short-term obligations.

2. Financial Strength:
   The company’s balance sheet reflects consistent fixed assets valued at approximately £314,618 over the last three years, indicating stable investment in property or equipment. Shareholders’ funds decreased from £90,185 in 2022 to £72,954 in 2023, signaling a decline in net equity. Total assets less current liabilities dropped from £90,185 to £72,954, driven primarily by an increase in current liabilities from £228,891 to £241,842 and a sharp decline in current assets from £4,458 to £178. The company is categorized as micro, consistent with its scale and financials, and shows no signs of insolvency but a weakening equity base.

3. Cash Flow Assessment:
   Current assets are critically low at £178 compared to current liabilities of £241,842, resulting in a net current liability position of approximately £241,664. This indicates poor short-term liquidity and an inability to cover immediate debts from current assets. The absence of employees and minimal operational data suggest the company may rely heavily on rental income or other passive revenue streams, but these are not reflected in current assets or cash balances. The financial statements do not indicate active cash flow buffers, which raises concerns about meeting short-term creditor demands without refinancing or asset sales.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to assess improvements or further deterioration in working capital management.
• Timely payment records and any increases in trade or short-term creditors.
• Changes in fixed asset valuations or disposals that might affect net asset position.
• Director’s strategy for addressing current liabilities and improving cash reserves.
• Any new filings or announcements indicating business expansion or capital injections.