ALICE AND ANGUS LTD

Executive Summary

ALICE AND ANGUS LTD exhibits high solvency and liquidity risk, reflected in its negative net assets and elevated liabilities, despite current statutory compliance. The company’s operational scale is minimal with no employees, which may constrain business continuity. Further examination of financial statements and cash flows is essential to fully understand its financial health and risk profile.

ALICE AND ANGUS LTD - Analysis Report

Company Number: SC679080

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company’s latest financials show negative net assets (-£233 as of 31 Dec 2023) and negative shareholders’ funds, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets, raising significant liquidity risks. Despite being a micro-entity, the capital erosion is a serious red flag.

2. Key Concerns:

• Negative Net Assets: The company moved from positive net assets (£3,672 in 2022) to negative (-£233 in 2023), suggesting losses or write-downs that have eroded equity.
• Liquidity Pressure: Although current assets increased, current liabilities remain high (£6,872), and net current assets are reported as positive (£4,390) which appears inconsistent and may reflect classification or reporting issues that require clarification.
• No Employees: The company reports zero employees, implying reliance on directors or contractors; this could affect operational sustainability and scalability.

3. Positive Indicators:

• Current on Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting compliance with statutory requirements.
• Established Management: Directors have been in place since incorporation and have direct control of the company, indicating stability in governance.
• Micro-entity Status: Simplified reporting and likely low operational complexity, which can reduce overhead costs and improve financial management if well controlled.

4. Due Diligence Notes:

• Verify the apparent discrepancy in net current assets figures and the negative net assets reported; review detailed notes to accounts for explanation of liabilities and asset valuation.
• Investigate the cause of the significant drop in net assets between 2022 and 2023—whether due to operating losses, write-offs, or other adjustments.
• Assess cash flow statements if available to evaluate liquidity and ability to meet short-term obligations.
• Review any contingent liabilities or off-balance-sheet risks not visible in micro-entity accounts.
• Confirm no director disqualifications or regulatory issues affecting company governance.