ALB IMMIGRATION ADVICE LTD

Executive Summary

ALB IMMIGRATION ADVICE LTD is an early-stage legal advisory company showing initial signs of financial recovery but currently operates with negative working capital and relies on director loans for funding. The company’s ability to service debt is conditional on maintaining cash inflows and managing liabilities prudently. Close monitoring of liquidity and profitability metrics is recommended before approving credit facilities.

ALB IMMIGRATION ADVICE LTD - Analysis Report

Company Number: 14094705

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALB IMMIGRATION ADVICE LTD is a very young private limited company in the legal advisory sector (SIC 69102). The most recent accounts show a slight recovery with net assets turning positive (£299) after two years of negative equity. However, the company currently reports net current liabilities (-£726) and relies on director loans (£6,827) to finance operations. The absence of employees and minimal tangible fixed assets (£1,025) suggest a small-scale operation. While the company is not overdue on filings and appears compliant, its negative working capital and dependency on director funding indicate some liquidity risk. Credit approval should be conditional on close monitoring of cash flows and confirmation of ongoing client revenue to ensure debt servicing capability.

2. Financial Strength:
   The balance sheet shows modest improvement but remains fragile. Net assets increased from a deficit of £20 in 2023 to a small positive £299 in 2024, primarily driven by retained earnings (profit and loss reserve at £199). Fixed assets are minimal but present. The company’s capital structure includes £100 share capital and director loans under current liabilities, signaling reliance on insider funding rather than external debt. Current liabilities exceed current assets by £726, indicating negative working capital which may pressure liquidity. Overall, financial strength is weak but showing signs of stabilization after initial losses.

3. Cash Flow Assessment:
   Cash at bank improved significantly to £8,421 with no receivables outstanding as of the latest year-end, suggesting some recent cash inflows. However, the company’s creditor obligations within one year are higher (£9,147), dominated by director loans (£6,827) and taxes/social security payable (£1,714). The absence of trade debtors may indicate upfront payment terms or limited credit sales. The company has zero employees, which reduces fixed overheads but also limits operational scale. Liquidity is currently tight with negative working capital and reliance on director loans, indicating cash flow is vulnerable. Monitoring actual cash generation from operations is critical before extending credit.

4. Monitoring Points:

• Working capital trends and ability to reduce current liabilities, especially director loans.
• Cash flow from operating activities and client payment patterns.
• Profitability trajectory reflected in profit and loss reserves in future accounts.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Director’s continued financial support and any changes in ownership or control.
• Potential growth in fixed assets or hiring that might affect cash needs.