ALEXIAM SOLUTIONS LIMITED

Executive Summary

Alexiam Solutions Limited demonstrates a high risk profile due to negative working capital and substantial indebtedness relative to equity. While tangible fixed assets provide some security, the company's small operational scale and lack of turnover disclosure limit insight into its ongoing viability. Prospective investors should closely examine cash flow, loan arrangements, and asset valuations before considering exposure.

ALEXIAM SOLUTIONS LIMITED - Analysis Report

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.