ALBBROS LTD

Executive Summary

Albbros Ltd exhibits high solvency and liquidity risks with ongoing negative net assets and working capital deficits over several years. While the company complies with filing requirements and remains active, its operational scale appears minimal and potentially unsustainable without addressing financial deficits. Further investigation into its business operations and financial management is recommended before considering investment.

ALBBROS LTD - Analysis Report

Company Number: 12645025

Analysis Date: 2025-07-20 17:15 UTC

1. Risk Rating: HIGH
   Justification: The company has persistent negative net current assets and shareholders’ funds across multiple years, indicating ongoing solvency issues. The working capital position is negative and worsening, which suggests liquidity constraints. The absence of employees and minimal fixed assets point to a lack of operational scale and stability.

2. Key Concerns:

• Solvency Risk: Shareholders’ funds and net current assets are negative and deteriorating (from -£1,311 in 2020 to -£5,400 in 2024), indicating the company’s liabilities exceed its assets. This raises doubt about its ability to meet debts as they fall due.
• Liquidity Concerns: Current liabilities consistently exceed current assets by a material margin, showing a negative working capital position that could lead to cash flow difficulties.
• Operational Stability: The company has no employees reported and minimal fixed assets (£50), which may indicate that it does not have sufficient operational capacity or resources to generate profits sustainably.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance.
• Active Status: The company remains active and not in liquidation or administration, indicating that it has not yet entered formal distress processes.
• Industry Classification: Engaged in construction and building development, which can be a viable sector if operational challenges are addressed.

4. Due Diligence Notes:

• Investigate the cause of persistent losses and negative equity — review profit and loss accounts and cash flow statements if available.
• Assess the company’s business model and client base to determine if revenue generation is stable or improving.
• Confirm whether any external financing or director loans support liquidity and solvency.
• Understand the reasons for no employees and minimal assets — is the company outsourcing or using subcontractors?
• Review director background and any related party transactions to rule out governance concerns.