ALB AUTO SERVICE LTD

Executive Summary

ALB Auto Service Ltd exhibits a high risk profile primarily due to its negative net assets and worsening working capital position, signaling solvency challenges. While regulatory compliance is maintained and some asset growth is noted, the company’s financial instability and limited operational scale raise concerns about its ability to sustain ongoing obligations without external support. Further investigation into cash flows and liabilities structure is warranted for a comprehensive risk assessment.

ALB AUTO SERVICE LTD - Analysis Report

Company Number: 14119892

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: HIGH
   The company displays significant solvency concerns with net liabilities increasing to £61,651 as of May 2024. Negative net current assets and persistent net losses indicate an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net current liabilities of £76,552 and net liabilities of £61,651 are materially negative for a micro entity, indicating poor financial health.
• Rapid Deterioration of Financial Position: The net liabilities increased by over 60% from the previous year, suggesting escalating financial stress.
• Limited Operational Scale and Resources: With only 3 employees and limited fixed assets, the business may lack operational resilience and flexibility to manage cash flow pressures or absorb shocks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement are up to date with no overdue filings, showing regulatory compliance.
• Stable Management and Ownership: The sole director and 75-100% shareholder is actively engaged, which can facilitate swift decision-making.
• Growth in Fixed and Current Assets: Increase in fixed assets and current assets from 2023 to 2024 may reflect some investment or growth efforts.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the company’s current liabilities to assess immediate liquidity pressures.
• Review cash flow statements and any available management accounts to understand operational cash generation or reliance on external financing.
• Evaluate the business model viability in the motor vehicle maintenance sector given the small scale and negative equity position.
• Confirm whether there are any related party loans or director advances that might mitigate liquidity issues.
• Assess any contingent liabilities or off-balance sheet exposures that could exacerbate financial risk.