Company Number: 12822588

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Albro Services Limited shows signs of modest growth and balance sheet improvement but remains a micro-sized company with limited scale and financial resources. The company has increased net assets from £2,774 in 2023 to £6,059 in 2024, improving working capital and liquidity. However, turnover figures are relatively low (around £45k in 2023) and there is limited information on profitability as income statements have not been filed or are exempt. The directors appear stable, but the appointment of a new director with an unrelated occupation (makeup artist) may warrant further inquiry into management continuity and operational control. Approval for credit facilities should be conditional on updated management information, confirmation of profitability, and a clear business plan to support debt service.

2. Financial Strength:
   The company’s net assets have more than doubled from £2,774 (2023) to £6,059 (2024), primarily driven by improved current assets and reduced liabilities. Net current assets improved significantly from a negative £1,420 in 2023 to a positive £2,704 in 2024, indicating strengthened short-term liquidity. Fixed assets declined slightly in net book value but remain modest at £3,355. Shareholder funds reflect the net assets increase, showing better capital buffer. Overall, the balance sheet is sound for a micro business but with limited asset base and equity, indicating moderate financial strength.

3. Cash Flow Assessment:
   Cash balances increased substantially from £390 in 2023 to £2,192 in 2024. Current liabilities increased slightly but remain manageable relative to current assets. The company’s working capital position improved markedly, which suggests better cash inflows or more efficient management of payables and receivables. However, trade debtors in 2023 included a long-term receivable of £2,450 which disappeared in 2024, indicating possible collection or write-off. The improvement in cash and liquidity is positive but given the small scale, cash flow remains vulnerable to operational disruptions.

4. Monitoring Points:

• Verify profitability through management accounts or P&L statements to confirm ongoing earnings capacity.
• Monitor turnover growth and margin sustainability given the low revenue base.
• Track management changes and impact on operational control and governance.
• Review aging of receivables and payables to ensure working capital remains robust.
• Confirm no contingent liabilities or related party transactions that could impair liquidity.