Company Number: 14026160

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: DECLINE
   ALB KIRKLEES LIMITED shows very weak liquidity and financial stability. The company’s current liabilities (£2.12m) far exceed its current assets (£164k), resulting in a substantial net current liability position (-£1.96m) which signals serious short-term cash flow stress. Although fixed assets are significant (£1.97m), these are not liquid and the company’s net assets are marginally positive at £12.4k, recovering from a negative net asset position the prior year. The financial trajectory is negative with a steep decline in net assets from nearly £99k to just over £12k in one year. The company’s ability to meet debt obligations and ongoing liabilities is questionable, and the absence of an audit may limit insight into underlying risks. Given the micro-entity status and minimal employee base (2), the business appears very small scale and vulnerable. Directors’ control is balanced but does not mitigate financial risk. Overall, the company is not currently creditworthy for lending or extended trade credit without substantial financial improvement or security.

2. Financial Strength:
   Balance sheet indicates high gearing with current liabilities exceeding current assets by a wide margin. Fixed assets are stable but the drop in net assets from a negative £99k to a positive £12.4k likely reflects accounting adjustments rather than operational improvement. Shareholders’ funds are minimal, providing little buffer against losses. The company has no significant cash reserves and is reliant on fixed assets that cannot quickly be converted to cash. This severely constrains financial strength and resilience.

3. Cash Flow Assessment:
   Negative net current assets suggest poor working capital management and potential liquidity crisis. The company has minimal current assets relative to its short-term liabilities, indicating likely difficulties in meeting immediate obligations. Without detailed cash flow statements, this position implies a risk of default or the need for external funding. The small employee base may control costs, but revenue generation is not evident from the data to offset liabilities. Monitoring of cash inflows and creditor payments is critical.

4. Monitoring Points:

• Track changes in current assets and liabilities for improvement in liquidity.
• Monitor net assets and shareholders’ funds for stabilization or growth.
• Review any external funding injections or asset disposals to improve cash position.
• Watch for timely filing of accounts and confirmation statements to ensure compliance.
• Assess directors’ strategic plans for addressing working capital deficiency and profit generation.
• Observe any credit defaults or delayed payments reported.