ALIMCO FIRE & ELECTRICAL LIMITED

Executive Summary

Alimco Fire & Electrical Limited exhibits a high risk profile due to deteriorating financial health characterized by negative net assets and a significant working capital deficit. While regulatory compliance is maintained and governance appears stable, the company’s limited scale and liquidity concerns raise questions about its operational sustainability. Further investigation into the causes of financial decline and cash flow dynamics is recommended before considering investment.

ALIMCO FIRE & ELECTRICAL LIMITED - Analysis Report

Company Number: 13303561

Analysis Date: 2025-07-20 16:26 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position with net liabilities of £7,842 as of 31 March 2024, compared to net assets of £298 the previous year. The current liabilities substantially exceed current assets by £12,961, indicating a poor liquidity position and potential solvency issues.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds have moved from a positive £298 to a negative £7,842 within one year, signaling accumulated losses or write-downs.
• Working Capital Deficit: A large deficit of £12,961 in net current assets suggests difficulty in meeting short-term obligations as they fall due.
• Limited Operating Scale: The company employs only one person and has minimal fixed and current assets, which may limit operational resilience and growth potential.

3. Positive Indicators:

• Current Compliance: The company is up to date with its accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• No Audit Requirement: As a micro-entity, the company benefits from simplified reporting requirements and exemption from audit, reducing administrative burden.
• Stable Directorship: The sole director has been in place since incorporation without reported disqualifications, which supports governance continuity.

4. Due Diligence Notes:

• Investigate the cause of the significant increase in current liabilities and the negative equity position—whether this reflects operating losses, creditor terms, or one-off charges.
• Review cash flow statements (if available) to assess liquidity trends and the company’s ability to generate cash internally.
• Understand the company’s business model and contract pipeline given the low asset base and employee count, to evaluate operational sustainability.
• Confirm the absence of any contingent liabilities or off-balance sheet obligations that might exacerbate financial risk.