Company Number: 12822895

Analysis Date: 2025-07-19 12:40 UTC

1. Risk Rating: HIGH

The company, Alexiam Solutions Limited, exhibits a high risk profile primarily due to its significant current liabilities exceeding current assets, resulting in negative net working capital. This imbalance indicates potential short-term liquidity issues. Additionally, the company carries considerable long-term indebtedness relative to its modest equity base, raising solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: As of August 31, 2024, current liabilities of £31,818 exceed current assets of £9,365, producing a net current liabilities position of £-22,453. This suggests potential difficulty in meeting short-term obligations without additional financing or asset liquidation.
• High Leverage: Total borrowings stand at approximately £183,696, including bank loans and related party loans, compared to shareholders' funds of only £11,345. Such a high debt-to-equity ratio implies financial vulnerability in adverse market conditions.
• Limited Operational Scale and Revenue Data: The accounts do not disclose turnover or profit and loss details, limiting the ability to assess operational cash flows and business sustainability. The company employs only one person, indicating a very small operational footprint reliant on key individuals.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds significant tangible fixed assets valued at approximately £209,061, primarily freehold land and buildings, which could provide collateral value to support borrowing or refinancing.
• No Overdue Filings: The company is compliant with statutory filing requirements, including accounts and confirmation statements, which suggests adequate governance on regulatory matters.
• Stable Ownership and Management: The sole director and 75-100% shareholder, Mr. Garren William Fletcher, has been consistently involved since incorporation, indicating stable control.

4. Due Diligence Notes:

• Cash Flow and Profitability: Investigate detailed management accounts or internal reports to understand revenue generation, profitability, and cash flow management given the lack of turnover disclosure in statutory accounts.
• Loan Terms and Security: Examine the loan agreements, especially the £107,000 loan from related parties and bank loan covenants, repayment schedules, and any cross-collateralization to assess refinancing risks.
• Property Valuation and Marketability: Confirm the current market value and liquidity of the fixed asset property securing the bank loan to evaluate asset-based security and potential for raising funds if required.
• Director and Related Party Transactions: Review any transactions between the company and its director or related entities to assess potential conflicts of interest or contingent liabilities.
• Future Funding Plans: Clarify how the company plans to address its negative working capital and high debt levels, including any anticipated capital injections or restructuring.