Company Number: SC669869

Analysis Date: 2025-07-20 12:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alger Assets Ltd has demonstrated a significant turnaround in its financial position in the most recent year, moving from net liabilities to positive net assets. However, the company's financial health remains fragile given its micro-entity status and historically negative equity positions. Approval for credit facilities should be conditional on continued monitoring of liquidity and profitability trends, and possibly secured or limited in size to mitigate risk.

2. Financial Strength:
   The balance sheet shows improvement with net assets of £13,901 as of 31 March 2024, up from net liabilities of £6,323 the previous year. Fixed assets have decreased from £27,050 to £12,625, indicating some asset disposals or depreciation. Current assets increased to £72,382, while current liabilities decreased slightly to £71,106, resulting in positive net current assets of £1,276. This modest working capital surplus is a positive indicator but remains tight. The company has a very low share capital (£3), typical for micro companies, but the increase in shareholders' funds suggests recent retained earnings or capital injections.

3. Cash Flow Assessment:
   Current assets primarily comprise cash and short-term receivables, while current liabilities mainly reflect trade creditors and short-term obligations. The small positive net current assets position indicates minimal liquidity buffer. The company must maintain careful working capital management to avoid cash flow difficulties. With only two employees, operating costs are likely low, but limited scale may constrain cash flow generation. No audit has been conducted, so underlying cash flow quality should be verified if further credit is extended.

4. Monitoring Points:

• Continuation of positive net asset growth and avoidance of reverting to net liabilities.
• Maintenance or improvement of net current assets to ensure liquidity.
• Profitability trends, including margins and cash generation from operations.
• Regular review of debtor and creditor cycles to mitigate working capital risks.
• Directors’ conduct and governance practices, although no adverse records are noted.