Company Number: 15028566

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE
   Alan Capel Ltd has a very limited financial history, being incorporated in July 2023 with its first and only reporting period ending July 2024. The balance sheet shows a negative net asset position of £6,019 and net current liabilities of £5,852, indicating immediate liquidity and solvency concerns. With negligible current assets (£35) against current liabilities of £5,887, the company lacks the working capital needed to meet short-term obligations. Given this financial position and no trading history to demonstrate operational cash flow or profitability, the risk of extending credit is high.

2. Financial Strength:
   The company is micro-sized with minimal assets and significant liabilities relative to its size. The negative shareholders’ funds reflect accumulated losses or start-up expenses exceeding initial capital contributions. No fixed assets are reported, and the balance sheet is dominated by current liabilities, suggesting reliance on short-term creditors or unpaid expenses. The absence of retained earnings or reserves underscores the fragile financial base.

3. Cash Flow Assessment:
   Current assets of only £35 versus current liabilities of £5,887 result in a net current liability position, highlighting poor liquidity. There is no indication of cash inflows or operating income to support working capital needs. The company’s ability to service debt or finance operations without additional equity or borrowing is doubtful.

4. Monitoring Points:

• Future filing of accounts to assess if the company improves its net asset position and working capital.
• Cash flow statements or management accounts to verify operational cash generation.
• Any capital injections or loans provided by the director or third parties.
• Trade payment performance and creditor aging profiles to monitor payment behavior.