ALBY AUTOS LTD

Executive Summary

ALBY AUTOS LTD is a newly formed micro-entity with an extremely limited financial base and negligible net assets, indicating a high risk of liquidity constraints and inability to service debt. Given the lack of financial track record and minimal working capital, credit facilities cannot be supported at this stage. Close monitoring of future financial developments and operational cash flows is essential before reconsidering credit exposure.

ALBY AUTOS LTD - Analysis Report

Company Number: SC778263

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion: DECLINE
   ALBY AUTOS LTD is a newly incorporated micro-entity (less than 2 years old) with minimal financial history and an extremely limited asset base. The company's net assets stand at only £1, and current liabilities almost equal current assets, leaving virtually no working capital buffer. Given the absence of fixed assets and negligible net current assets, the company’s capacity to service debt or absorb financial shocks is highly constrained. Additionally, without any financial performance data such as revenues or profits, there is insufficient evidence of business viability or cash generation capability to support credit extension.

2. Financial Strength:
   The balance sheet reveals a very fragile financial position. With zero fixed assets and current assets barely covering current liabilities by £1, the company lacks tangible collateral or liquidity cushions. Shareholder funds are minimal (£1), reflecting the company’s start-up phase with limited capital injected. The company employs 2 staff, indicating some operational activity, but no financial buffer exists to sustain unforeseen expenses or downturns. The absence of reserves or retained earnings further underscores the embryonic financial state.

3. Cash Flow Assessment:
   The near equivalence of current assets (£5,404) and current liabilities (£5,403) produces a negligible net working capital (£1), signaling extremely tight liquidity. This leaves no margin for delays in receivables collection or unexpected payment obligations. With no fixed assets or other long-term investments, the company likely relies on ongoing cash inflows from operations or shareholder support to meet short-term obligations. The limited data prevents a definitive assessment of cash flow trends, but the current snapshot suggests liquidity risk.

4. Monitoring Points:

• Monitor future filings for revenue, profit, and cash flow trends to assess operational sustainability.
• Watch for improvement in net current assets and accumulation of reserves indicating financial strengthening.
• Track the director’s continued involvement and any changes in ownership or governance that may impact credit risk.
• Watch for timely submission of accounts and confirmation statements to ensure regulatory compliance and maintain transparency.