Company Number: 14077860

Analysis Date: 2025-07-29 14:44 UTC

1. Credit Opinion: DECLINE. ALCA Properties Limited displays a weak liquidity position with significant net current liabilities worsening over two years. The micro-sized property trading business shows limited working capital and marginal positive net assets only due to fixed assets. The company is in early stages (incorporated 2022) and has yet to demonstrate sustainable cash flow or profitability. The high current liabilities relative to current assets indicate difficulty in meeting short-term obligations, raising concerns over repayment capacity. Without improved liquidity or additional capital injection, credit risk is elevated.

2. Financial Strength: The balance sheet shows fixed assets of £634,562 consistently, likely representing property holdings. Current assets increased modestly from £143,689 to £216,129 year-on-year, but current liabilities also rose to £813,311, resulting in a negative net working capital of £597,182. Shareholders’ funds improved from a deficit of £9,297 in 2023 to a modest positive £37,380 in 2024, reflecting some equity injection or retained earnings. However, the overall financial strength remains fragile due to heavy short-term liabilities and minimal equity buffer.

3. Cash Flow Assessment: The company’s working capital deficit suggests cash flow pressures in meeting short-term creditors. No income statement or cash flow statement is provided, but the negative net current assets imply reliance on external financing or owner funding to cover obligations. The absence of audit and the micro-entity status limit transparency, but the current financials point to constrained liquidity and potential difficulty in servicing debt without operational cash inflows or refinancing.

4. Monitoring Points:

• Monitor changes in current liabilities and current assets to assess liquidity trends.
• Watch for improvements in net working capital and shareholders’ equity.
• Track any capital injections or loan restructuring to alleviate short-term funding gaps.
• Review filing of subsequent accounts for signs of profitability or cash flow improvements.
• Follow director’s actions and any new appointments or PSC changes that might impact governance.