ALEXANDER KITCHENS LIMITED

Executive Summary

Alexander Kitchens Limited is currently in a financially weak position with significant negative working capital and net liabilities. The company relies heavily on related-party funding and has minimal liquidity, raising concerns about its ability to service new credit. Without material improvement in financial strength or cash flow, credit facilities are not recommended at this time.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

ALEXANDER KITCHENS LIMITED - Analysis Report

Company Number: 13645591

Analysis Date: 2025-07-29 12:42 UTC

  1. Credit Opinion: DECLINE
    Alexander Kitchens Limited presents significant credit risk due to its weak financial position. The company has persistent net current liabilities exceeding £650k and negative shareholders’ funds, indicating an over-reliance on external support. Despite being operational, the absence of positive net assets and minimal current assets (£492) severely limits its ability to service debt or new credit. The company’s business model and financial statements show no evidence of profitability or cash generation to improve its financial standing, and the directors rely on ongoing group company support. Given the high current liabilities compared to very low current assets, extending credit is not advisable without substantial guarantees or collateral.

  2. Financial Strength:
    The balance sheet reveals a net liability position of £2,771 as of 31 December 2023, worsening slightly from the previous year. The fixed asset investments of £650,000 are offset by large current liabilities of £653,263, resulting in negative net current assets of £652,771. The company’s equity is negative (£-2,871), reflecting accumulated losses or funding shortfalls. There is no evidence of tangible operational assets or inventory. The company’s financial position is highly leveraged and dependent on related-party funding (amounts owed to group undertakings of £317,513), which may not be sustainable long term.

  3. Cash Flow Assessment:
    Cash at bank is minimal (£392), and debtors are negligible (£100), providing very limited liquidity. Current liabilities exceed current assets by a large margin, indicating working capital deficiency. The company does not appear to generate positive operating cash flows and depends on external group company financing to meet obligations. The absence of bank loans beyond a minor overdraft (£41 in 2022, now zero) suggests limited external borrowing capacity. The very low liquidity position raises concerns about the company’s ability to meet short-term liabilities without continued group support.

  4. Monitoring Points:

  • Monitor changes in net current assets and shareholders’ funds to detect signs of financial improvement or further deterioration.
  • Review ongoing support from group undertakings and whether this is sustainable or formalized through intercompany agreements.
  • Watch for any significant changes in current liabilities, particularly amounts owed to related parties.
  • Assess trading performance and cash flow generation in future filings for signs of operational viability.
  • Verify directors’ continued support and any plans to restructure or recapitalize the business to improve going concern status.

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